When using Remote Update and the Direct to Application (DTA) mode in the Intel® Arria® 10 devices, in order for the Factory fall back mechanism to work, you must enable the ‘Auto-restart configuration after error’ option under the following menu in the Intel Quartus® Prime software: Assignments > Device > Device and Pin Options > General > Auto-restart configuration after error
This information is scheduled to be added in a future release of the Remote Update Intel® FPGA IP User Guide.