It's actually not misleading. The report states not latest "Build", and "Build" is the field it is basing it off of.
If you wanted it to be based off of anything less than the most current OS Version you could do something like this:
[To be clear on the report below, I just took the other canned report and removed the requirement to check the build number. There was already something in place to check the OSCode max value so no additional work was necessary.]
Select Top (1000000) SQ.icon,
SQ.AssetID,
SQ.AssetName,
SQ.OS,
SQ.Build,
SQ.[OS Version],
SQ.Domain,
SQ.Username,
SQ.Userdomain,
SQ.IPAddress,
SQ.Description,
SQ.Manufacturer,
SQ.Model,
SQ.Location,
SQ.IPLocation,
SQ.Firstseen,
SQ.Lastseen
From (Select tsysOS.Image As icon,
tblAssets.AssetID,
tblAssets.AssetName,
tsysOS.OSname As OS,
tblAssets.OScode + '.' + tblAssets.BuildNumber As Build,
tblAssets.Version As [OS Version],
tblAssets.Domain,
tblAssets.Username,
tblAssets.Userdomain,
tblAssets.IPAddress,
tblAssets.Description,
tblAssetCustom.Manufacturer,
tblAssetCustom.Model,
tblAssetCustom.Location,
tsysIPLocations.IPLocation,
tblAssets.Firstseen,
tblAssets.Lastseen,
Cast(Replace(Replace(Replace(tblAssets.OScode, '.', ''), 'S', ''), 'R',
'') As BIGINT) As OsCodeNumeric,
Cast(tblAssets.BuildNumber As INT) As BuildNumber
From tblAssets
Inner Join tblAssetCustom On tblAssets.AssetID = tblAssetCustom.AssetID
Inner Join tsysOS On tblAssets.OScode = tsysOS.OScode
Left Join tsysIPLocations On tblAssets.LocationID =
tsysIPLocations.LocationID
Where tsysOS.OSname = 'Win 10' And tblAssetCustom.State = 1 And
tblAssets.BuildNumber Is Not Null) SQ
Cross Join (Select Max(os1.OSCodeNumeric) MaxOsCodeNumeric
From tsysOS os1
Where os1.Sortorder = 18) mo
Cross Join (Select Max(Cast(a.BuildNumber As INT)) MaxBuildNumber
From tblAssets a
Inner Join tsysOS As o On o.OScode = a.OScode
Where o.OSname = 'Win 10' And a.BuildNumber Is Not Null And
Cast(Replace(Replace(Replace(a.OScode, '.', ''), 'S', ''), 'R',
'') As BIGINT) = (Select Max(os2.OSCodeNumeric) From tsysOS os2
Where os2.Sortorder = 18)) mb
Where (SQ.OsCodeNumeric < mo.MaxOsCodeNumeric) Or
(SQ.BuildNumber < mb.MaxBuildNumber)
Order By SQ.AssetName