Very strange but did a little more playing around with the PAC file and not sure if Smart Console has some odd issue it can't read a PAC file but this is what I found out...
Get the error:
(dnsDomainIs(host, ".updates.checkpoint.com")) ||
(host == "updates.checkpoint.com") ||
Worked:
(dnsDomainIs(host, ".checkpoint.com")) ||
On the firewall, I only see a single connection out during the update check time and it's to updates.checkpoint.com. Unsure why I had to exclude the entire domain for it to function.