Patches not applying

I have the computers assigned to a policy that has a windows update policy assigned with the following settings

SECURITY VULNERABILITIES PATCH SEVERITY APPROVALS
Critical, Important ---- Approve
Moderate, Low, Other. ----- Deffer

WINDOWS AND MICROSOFT PATCH CATEGORY APPROVALS
Critical Updates, Update Rollups. ---- Approve
Service Packs, Feature Packs, Definition Packs == Manual
Drivers – Reject
Other — Manual

But after running the scheduled update last weekend i found that CRITICAL UPDATE KB501342 was not installed !!! this was one of the updates i was hoping would get installed. So now i am having to manual install this update.

What am i doing wrong? why does it not install patches that are in the approved category…

Can you link me to your patch policy so I can have a look please?