Azure HotPatching - Server 2022 Datacenter

Deployed server 2022 VMs using hotpatch datacenter image. Servers showing updates in azure update manager as expected. Some clustered servers are in an availability set.

• Periodic assessment: Enable (current)
• Hotpatch: Enable (current)
• Patch orchestration set: Azure Managed - Safe Deployment

1. Servers show enablement status: enabled. Readiness status: missingrequiredbaseline. I can see the servers are still picking up and listing updates in AUM. If I install these from AUM they install fine and are shown on the server. The servers show the Jan baseline in place in updates list - why will the readiness status not change?
2. Do we still need to apply scheduling for these if the baselines are released every quarter and smaller updates inbetween? will setting a schedule affect hotpatch functioning? If a schedule is not set, is it just manual 'one-time update' that we use?

thanks in advance!