Updates proxy should "provide network" otherwise qubes-global-config won't recognize it?

Why is it? Does it make any sense?
Even worse, if you set it manually in policy file, if the property is not set, the GUI config will crash!

I believe it would be nice to create a Github issue about this, especially if you can get some kind of log.

It makes no sense, particularly as things were changed to stop network
access to the update proxy by default - was useful for standalones, HVM, &C.

I cant duplicate the reported crash of the GUI config.
However, if an existing rule references an update proxy, and the
“provides network” is removed from that proxy, then it seems to be
impossible to remove the rule in the GUI.

I never presume to speak for the Qubes team.
When I comment in the Forum I speak for myself.

Can open a GitHub bug with the policy file contents and the output of running qubes-global-config in a terminal?

I’m not sure about your specific issue, but AFAIU the idea behind the updates proxy is so that it does NOT provide “full” network to the templates, and only acts as a proxy for the “downloading part” of dnf/apt commands. I don’t know how exactly this is implemented, but the GUI has had for a while warnings about connecting templates to a network-providing VM.

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