Proactive Quality Updates are incremental updates released by Microsoft per their standard release schedule. Unlike normal Service Updates, these do not include new features. Rather Proactive Quality updates are more like Dynamics 365 maintenance, they only issue fixes and improvements.
The second scenario: This would be if you experience any issue that is only impacting your organization. In this case, you will need to open a support ticket with Microsoft to report the issue and engage in troubleshooting. Depending on the specific issue, they can halt the quality update to the other environments in the project until the issue is resolved.
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