According to support case # 0030025 and # 0026447, PMP Publisher is found unable to pass on package settings inheritance in relation to below parameter
Package Properties > Distribution Settings > Prestaged distribution point settings
PMP Publisher always default the value to be Manually copy the content in this package to the distribution point
We would like PMP Publisher being able to read such value for PMP managed packages and inherits along future new packages.
In addition, we would like PMP Publisher supports pre-configuration of that parameter so that it can default as Automatically download content when packages are assigned to distribution points.
Perhaps there is unique environmental behaviour regarding content distribution. However, we found the above parameter setting works for us and is essential to our auto patching process.
Thanks for the ongoing support from everyone.