Windows 10 Update changed local account policy on local standalone machine

The other day my machine was automatically updated to version 1809 Build 17763.437, without any incidents.
My machine is a single, standalone Win 10 Pro (no Domain), using an only local account and NOT logging on using a Microsoft account. The local account is a member of the local Administrators Group.
I had previously configured an Account Password Policy (admittingly weak, but it serves my purpose) with the following:
Enforce password history: 0 passwords remembered
Maximum password age: 42
Minimum password age: 0
Minimum password length: 0
Password must meet complexity requirements: Disabled
Store passwords using reversible encryption: Disabled
expecting the above settings to revert, but after restart machine: no such thing.

Also, Settings, Accounts, Sign-in options mentions:
*Some settings are hidden or managed by your organization.
You must add a password before you can use the other sign-in options.
Windows Hello states:
This setting is managed by your organization. Contact your admin for more information.
This “…setting is managed by your organization” is also to be found in other places in “Settings”.
Two questions:

  • Why on earth is this update messing up my Account Password policy?
  • How can correct this, so the system will ‘honor’ the password policy as it is defined, and thus the passwords I want?
    Any insight/help is greatly appreciated.
    Any suggestions appreciated
    Thanks a lot