Ok this is not as bad as Superfish, but it’s bad enough. Samsung is disabling Windows Update so that it doesn’t have to deal with driver update issues.
When you enable Windows updates, it will install the Default Drivers for all the hardware no laptop which may or may not work. For example if there is USB 3.0 on laptop, the ports may not work with the installation of updates. So to prevent this, SW Update tool will prevent the Windows updates.
via Debugging and reverse engineering: Samsung deliberately disabling Windows Update.