I just tested this on our lab system and I was able to replicate the issue. I am reporting this situation to the corresponding parties to follow up this situation.
Thank you for sharing this information and I would like to invite the community to keep sharing any findings and/or comments that may lead to a workaround.
I will post again as soon as I get an update on this.
To answer your question, the behavior is not normal since the system should restart after the update. If the system just hangs we recommend manually shutting down, reboot the server and enter the BIOS set menu>Server Management>System information to confirm that the updates for all components were applied correctly.
this is a known issue on the S1200V3 Boards, but with some testing we where able to find and fix this.
If you follow all those steps, it should work:
1. Take a USB 2.0 Stick and secure that it has no errors
2. Extract the 03.02.0003 Firmware Upate from Intel® Download Center to the USB Stick
3. Update the Firmware (even if you did it before !)
4. Restart the Server
5. Load BIOS-Defaults (and restart again)
6 set VT-x in BIOS (to be sucessfully this needs the server to shout down and restart again)