There's gpo settings to stop windows update from updating 3rd party apps. If you want to have something check anyway, I tend to use UnigetUI or just plain winget.
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So I couldn't find anything for 3rd Party Apps. I found GPO settings for disabling Automatic Updates which doesn't apply in this situation because I already have it disabled. Where are the GPO settings for 3rd Party?
Now that I look at it I'm not sure.
Is this a windows store app by chance?
No, I used CSP's installer not via the MS Store.
I would complain to the developer. They're the ones managing this process.
Even because OP is a paying customer. We can find workarounds, but only they can resolve the issue.
I'm going to assume you're looking for a solution in a personal context, not organizational so I won't suggest local group policy.
Instead, I'd recommend removing the msstore source from "Winget". The Microsoft Store uses this source to push updated for installed third party applications. It may not solve the issue entirely, but I find that as Microsoft expands the use of winget as a package manager for Windows (especially Windows 11), the store itself seems to use it for update provisioning.
Where do you see this dialog? Is it in the settings app? In the settings where? Can you share a full, bigger screenshot? What are the options in the ... button in the end?
Never seen a program which updates like this, that's why a bit more context would help.
Corrected my original post. I've also updated it to reflect that larger context as well as the content in the "..." menu option.
Selecting the "Cancel Download" within the "..." menu only stops the download for that instance. When the Store rechecks for updates, this will pop back up. There doesn't seem to be a way to tell the Store to ignore updates for that product.
If there's isn't a way to disable specific updates, then I'm not sure what I would want to do as I also have PowerToys installed. That also get updated via this context and I like that streamline so I'd prefer not to turn off ALL 3rd party updates if you even can.
It doesn't matter where you installed it from, it will behave as a store app for some reason. What if you disable all app updates:

This won't affect windows security updates, only updates for apps like notepad. You can still update them manually ocasionally.
Other hacky option I'm thinking of: the store reads the version number of the app from somewhere, I guess somewhere from the registry. Try to find the registry value and change that number to something very big. Then the store will think your version is newer and it won't try to overwrite it. Be careful with the registry.
It would be in the Downloads section of the Microsoft Store.
Correct. I had mistakenly stated Windows Update and I meant the updates via the Microsoft Store. I've updated my post to correct that mistake and added some clarifications.
I wonder if there's a way you can blacklist their certificate? I'm not sure if that'll override the CA trust but it might subvert the updating process