We removed the following line from fdroid and compiled it.
https://gitlab.com/fdroid/fdroidclient/blob/master/app/src/main/java/org/fdroid/fdroid/UpdateService.java#L170
We also had to compile the fdroid privileged extension with our signature but there were no changes made.
When the automatic update runs, the screen goes black and returns to the Kiosk mode launcher. To reopen the application on update we had to modify our application.
We added a Broadcast receiver for intent for "MY_PACKAGE_REPLACED".
After all the changes, the application will automatically check for updates, then update, then reboot the application, all while staying in Kiosk mode.
We are not very keen on maintaining our own compiled versions of Fdroid and the privileged extension.
We assumed that the device would go IDLE after the Android sleep setting (In settings) dimmed the display. We left it over night and it didn't seem to go IDLE.