Which Windows update setting automatically downloads and installs the latest version?

The setting that automatically downloads and installs the latest version of Windows is Fully Automatic. This option is designed to ensure that users have the most up-to-date security patches, features, and system enhancements without the need for manual intervention or additional input from the user. When this setting is enabled, Windows continuously checks for updates and installs them in the background, helping to keep the operating system secure and functioning optimally.

Other options do not provide the same level of automation. Manual Update requires user initiation for any installations, putting the onus on the user to stay current with updates. Selective Update allows the user to choose which specific updates to install rather than applying all available updates automatically. Scheduled Update typically runs at specific times decided by the user, which may not align with the immediate availability of the latest updates. Therefore, Fully Automatic is the most efficient and user-friendly option for ensuring that the latest updates are consistently applied.