Lync Phone Edition and wpad.dat - using proxy for firmware updates

Question

Our Lync Phone Edition devices seem determined to use our proxy server for firmware updates, even though the server is directly accessible.
Has anyone else experienced this?  Is there a workaround?  
The phones are learning of the wpad.dat file via DHCP 252.  The wpad file has several rules that should be causing a bypass but none is taking effect.   The proxy is dropping the traffic because it doesn't match a rule.
0:59:53.632.540 : [CPU 0] Raw data 208 (wchar), UCD_LOG_INFO: 08/04/2014|10:17:13 UCDAPI: PerformImageUpdateThread started with lpThreadParm(0x1938c00)
0:59:53.688.396 : [CPU 0] Raw data 1246 (wchar), UCD_LOG_INFO: 08/04/2014|10:17:13 UCDAPI: XMLRequest To OCS = <Request><DeviceType>UCPhone</DeviceType><MacAddress>00-04-F2-9E-8F-F4</MacAddress><SerialNumber>0004f29e8ff4</SerialNumber><IP>10.124.1.41</IP><UserID>[email protected]</UserID><NumOf 0:59:53.688.638 : [CPU 0] Raw data 174 (wchar), UCD_LOG_VERBOSE: 08/04/2014|10:17:13 UCDAPI: UCDHTTPTransport::CloseConnections called
0:59:53.731.587 : [CPU 0] Raw data 444 (wchar), UCD_LOG_INFO: 08/04/2014|10:17:13 UCDAPI: UCDAutoproxyGetProxyInfo: https://xyz-lyncfe-02.xyz.net/RequestHandler/ucdevice.upx can be reached through one of these proxies: 192.168.127.201:8080 192.168.127.202:8080
--:--:--.---.--- : [CPU 0] ====================== Data loss counter: 0 bytes lost ======================
0:59:53.983.597 : [CPU 0] Raw data 174 (wchar), UCD_LOG_VERBOSE: 08/04/2014|10:17:13 UCDAPI: UCDHTTPTransport::CloseConnections called
0:59:53.985.010 : [CPU 0] Raw data 1494 (wchar), UCD_LOG_INFO: 08/04/2014|10:17:13 UCDAPI: OCS Response = <?xml version="1.0" ?><Response><NumOfFiles>1</NumOfFiles><CurrentTime>2014-08-04T13:17:13</CurrentTime><Update><FileName>CPE.nbt</FileName>
<SignatureFileName>CPE.cat</SignatureFileName>
<DescriptFi 0:59:53.991.169 : [CPU 0] Raw data 170 (wchar), UCD_LOG_INFO: 08/04/2014|10:17:13 UCDAPI: SetLanguageList called with langlist (ENU)
0:59:53.996.727 : [CPU 0] Raw data 1394 (wchar), UCD_LOG_INFO: 08/04/2014|10:17:13 UCDAPI: Selected download string =
FileName = CPE.nbt
SigFile = CPE.cat
BaseURL = http://xyz-lyncfe-02.xyz.net/RequestHandler/Files/UCPhone/POLYCOM/CX600/Rev-5/ENU/4.0.7577.4444/CPE
RelURL = /RequestHandler/Fil 0:59:54.002.158 : [CPU 0] Raw data 146 (wchar), UCD_LOG_INFO: 08/04/2014|10:17:13 UCDAPI: CallDiskCleanUpCallback called
0:59:54.002.460 : [CPU 0] Raw data 137 (char), UCD_LOG_VERBOSE: 08/04/2014|10:17:13 Aries: 08/04/2014|10:17:13.685 5540002:4390672 TRACE :: CImageUpdate::UpdateStartedCallback: Enter

Answer 1

I do not have those options set in DHCP because we do not use these as PIN-authenticated phones.  The phone is registering fine and is learning the correct URL:
BaseURL = http://xyz-lyncfe-02.xyz.net/RequestHandler/Files/UCPhone/POLYCOM/CX600/Rev-5/ENU/4.0.7577.4444/CPE
Are you saying that the phone will bypass the proxy if it learns the server name via DHCP but it will use the proxy (and ignore the local names list in wpad.dat) if it learns the name via DNS-based discovery and SIP registration?