We have FME 2018.1 when you choose “Use system proxy settings” it uses the system proxy ok, but it ignores any exceptions you may have set in Internet Options e.g. for local addresses that don’t use the proxy. The work around I have at the minute is to add each individual server on our local domain to the Custom Proxy Map in FME Preferences as having No Proxy however I can’t use a wildcard to do this the same way it is in the Internet Options exceptions list e.g. server1.domain.com rather than *.domain.com. Is this by design?
Exception list in Internet Options Proxy Window and use System Settings in FME