Control Panel -> Altiris Deployment Server (32-Bit) ->Options ->Transport and uncheck “automatically update clients” option is not respected when upgrading from GSS 3.1.X to 3.2,  agents get automatically upgraded. 

No error messages.

Defect. 

Fixed starting from GSS 3.2 RU2.
 
The fix is applicable to the upgrade process from 3.2.X to 3.2. RU2 (ETA 07/18/2017). 

It is possible to  workaround the situation when upgrading from GSS 3.1.X to GSS 3.2:
1. Create a backup copy of "C:\Program Files (x86)\Altiris\eXpress\Deployment Server\Agents\AClient"; 
2. Replace the files in the AClient folder with the files from the backup folder,​ immediately after you run the update;
3. This should keep the clients for updating as the client version would be the same.