There's a lot of components here. Agent "update" tasks and "deployment" tasks are different. By definition one could argue that a deployment IS an update task. You need to ensure that your distributed repository is configured to replicate VSE package as intended. Then configure your client tasks accordingly with same branch. I'm inclined to think client will reach out to the DR as dictated by agent policy. For this to work, everything has to be in order. Otherwise clients will try to contact ePO for the installation package. If you open the Agent monitor window, you can see the progress and where client is receiving the package from.