er...again
I think the portion of the EULA that applies here is this one.
2. AUTOMATIC INTERNET-BASED SERVICES. The Software features described below are enabled by default to connect via the Internet to Microsoft computer systems automatically, without separate notice to you. You consent to the operation of these features, UNLESS YOU CHOOSE TO SWITCH THEM OFF OR NOT USE THEM (my caps). Microsoft does not obtain personal information through any of these features.
Seems to me that by selecting "let me choose when to install them" or "notify me but don't automatically download or install them" in automatic updates you are effectively telling Microsoft not to automatically install software and if they go ahead and do it anyway then they committed a trespass.