SEP clients downloading updates at wrong time

I have SEPM 12.1.3001.165, and a remote site with a Live Update Administrator installation.

I have set the distribution schedule in LiveUpdate administrator to daily at 1PM, and also the LiveUpdate policy in SEPM to daily 1PM, yet my clients are downloading their updates at 3.30PM instead?

What could I be doing wrong?

What's the difference between the SEPM LiveUpdate Policy schedule vs the LiveUpdate Administrator Distribution Schedule?