I was wondering if it is possible for users to add any software to the list so Avast free version can check for new updates.

Also where does the remaining setup files of those softwares that gets updated by Avast is kept?

There is no option to add programs.

The programs avast has pre-selected are those which are usually internet facing and generally targeted by malware.

Firstly I’m an avast user like yourself - Avast would generally just launch that programs update function, so presumably they would be in the same location if you had done the update yourself.

I have searched for those downloaded files in avast folder as well as the program it self, but can’t find them.

If I was looking I would think that the setup folder would be the location I would monitor, but I rather think that they would be cleared when the update is complete. All you are likely to see would be the new files with the updated/new file properties, new volume and date of modification/creation, etc.

Whist avast does use temporary folders for some things, such as the c:windows\temp_avast_ recently there is another c:windows\temp\avast_ash2, but I believe that is more related to the avast Software Updater and mostly empty sub-folders.