Hi Thomas,
Yes, disabling Express/Delta downloads and redistributing the full Feature Update package is a supported and commonly used remediation, particularly if you're encountering inconsistent client-side behavior.
UpdateServiceUrlAlternate = http://localhost:8005 is configured by the Configuration Manager client when Express Installation Files are enabled. The localhost:8005 listener is provided by the CCM client to proxy update content. If that listener isn't running or isn't reachable, Windows Update may fail to retrieve content, which can result in errors such as 0x80240440 during Feature Update installation.
Before disabling Express downloads across the environment, I'd recommend verifying why the local listener isn't starting on the affected clients. Useful areas to investigate include:
CCMExec service health and client version consistency
LocationServices.log, UpdatesDeployment.log, UpdatesHandler.log, WUAHandler.log, and DeltaDownload.log (if present)
Windows Update Agent configuration and policy application
Local firewall or endpoint security software blocking port 8005
Client repair (ccmrepair) or reinstall if the issue is isolated to specific devices
If the failures are widespread and Express content isn't providing significant WAN savings, disabling Express Installation Files for Feature Updates and using full content is a perfectly valid operational choice. Many organizations adopt this approach because it simplifies troubleshooting and often improves deployment reliability, at the expense of increased download size.
It would still be useful to hear from Microsoft whether the absence of the localhost:8005 endpoint is expected to cause Feature Update failures or whether the client should automatically fall back to full-content downloads in this scenario. That clarification would help determine whether this behavior is by design or indicative of a client issue.