Not sure why this would be the case?
auto_update_theme hook is working for themes that use the WordPress servers to do the update process, our theme is not hosted there and has separate API which gets the files from our server. You need to Validate the theme and then do the update via the X > Validation menu.
Finally, it is not recommended that you enable the auto-updating feature for the theme, as our theme is a multipurpose one and has many features. It is always important that you test the new updates first and make sure everything works correctly before performing the update itself.
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