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With most of the 3rd party packages, there are more than one option for packages to deploy. Specifically, there is usually a FULL INSTALL version and an UPGRADE ONLY version. It appears that you may have published the full install version of that Java package - it is certainly possible for that to show as Not Installed if you have published it even if the target machine does not already have Java. If you want to only upgrade machines that already have Java 8, you will want to delete the other update from WSUS and republish the Java package that contains the word (upgrade) in the title instead.