There are 2 different ME. ME Firmware and MEI Driver.
Windows Update does not do ME Firmware updates/installs that I have seen on z690/z790. Also Asus notes it in bios notes to update ME Firmware.
I see many confuse the two ME, I have done it myself in the past. ME Firmware should be done before bios update to avoid having to move NVME drive or using another drive to install ME Firmware after bios update if the OS is on NVME in top slot.
Also if dual bios you need to update each bios ME Firmware.
ROG MAXIMUS Z790 APEX BIOS 0703
"1. Improve system performance
2. Fix the driver compatibility issue with NVIDIA RTX40 series cards
3. We suggest updating the ME firmware to the latest version 16.1.25.2020
“Before BIOS update, please download Intel ME update tool from ASUS support site, and update ME firmware to Version 16.1.25.2020 to ensure optimized system settings.”
Edit I had to click Show More Description on Asus bios page to show all the info.