Hello John,
I understand your concern on this AVG updates.
When you select "Manual or Ask when an update is available", you are not protected by from the latest updates.
Your computer will still be completely protected from threats and infections.
You can send the feedback or suggestions from the AVG interface.
Open AVG Internet Security->Click on "Menu->About->Submit Feedback".
From here you will be able to directly submit your feedback on AVG products to the developer team.
Run AVG repair http://avgclick.me/RepairAVG from your computer control panel and check if that fix the update issue.