The password should not be required when you are only updating packages.
Some updates may try to pull in new dependencies, and kernel updates are
considered to be new packages, in which case the password is required.
Are you sure update-manager isn't trying to install new packages?
** Changed in: update-manager (Ubuntu)
Status: New => Incomplete
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https://bugs.launchpad.net/bugs/912913
Title:
Update-manager should not require authentication password in Precise
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