I'm not accepting your implied premise: That Windows is allowed to use the scarce resources in a way that interferes with the User activity.

This is independent of where the resource limit is.

No, I suggest that there was no update at all and the lags were caused by wifi

The update gives itself away by the "Update and Reboot" button appearing half an hour later.

If you are sure that it was Windows, then you can also disable it

> Maybe you are using wifi like majority of gamers and blame the wrong thing?

What does that mean? For most people, the wi-fi is not the limiting factor for internet speed.

Sure, but "most people" is a low bar : "most people" probably can't even afford a computer with a dedicated graphics card either : the median per-capita household income is only $2,920 per year.

As for most people with a less than a decade old dedicated graphics card : I actually do believe that WiFi is a limiting factor for Internet speed.

Internet speed is irrelevant

Packet drops and ping spikes are the problem

Packet drops are not entirely separable from speed. One reason packets get dropped is congestion, and speed obviously helps with congestion, since it is an important determiner of capacity.

But, indeed, the speed of an uncongested hop is irrelevant, in that it could slower by some factor, yet without it making a difference to the packet loss.