Getting updates from PCs on local network doesn't happen

Does this feature work as intended? We have two desktop PCs and one laptop at home, all running Win10 version 1607 x64 Pro and all on the same IP subnet. All three machines are configured in Settings / Update & Security / Advanced Settings with "Updates from more than one place" set to On for PCs on the local network. However, regardless of which machine I update first and leave running, the other two machines will download their updates from Microsoft and not from the already updated PC. I can see that this is happening by viewing the statistics page on my Internet router while the 2nd and 3rd machines are downloading the updates, and the throughput on my Internet connection is running at maximum speed, with nothing but the Windows updates being downloaded. For instance, this month's KB3213986 cumulative update (almost 1Gb in size), was downloaded from the Internet three times over, rather than being downloaded once and then used as the source for the other two machines.

I've never seen this happen on my local network for updating the other PC/Laptops after the first one is done. I don't believe it works and have not known anyone observe it happening.

Doesn't work at the moment, thread on this actually here > Update many PCs in the same time ?

One way I do is to use the Learn more link on the Update page to get a place to download both the 32-bit and 64-bit versions of the update files, usually a bit over 500MB [32-bit] and a bit under 1GB [64-bit], dump them on one of my mapped NAS drives then can simply install as desired from there.