The tray animation (spinning orange ball) doesn’t work when I select “manual updates” or “ask me when if an update is available.” Instead I see a yellow exclamation mark over the orange ball with a note saying “your system isn’t fully protected.” The orange ball/tray animation only works if you select automatic updates for both program and virus definitions updates. I prefer choosing manual updates. The blue ball in 4.8 worked fine regardless of what type of update settings I picked, but with this new v5.0462 orange ball it doesn’t. Is there a fix for this?
Its really normal.
My client computer has that also because im using deep freeze.
That yellow mark was only warning to you that the required settings for Avast is to make it Automatically Updates.
Making Manual updates on Engine and Virus Definitions will make a yellow mark for the orange ball.
Added info i think you also unchecked the Animate Icon when Scanning?
ok just take a look the picture if you have the same settings. 
Best Regards!!!
edit: opps too big picture
Is there a fix for this?
Yes.
Changing The Monitored Components
1 Have the setting you want set to manual (Definition auto updates and Program version)
2 On avast! Interface, click Settings > Status Bar
3 Uncheck Definition auto updates and Program version
4 Click OK
After doing this, however, you would have to constantly check your definitions’ date to keep up with the threats.
Tnx for the info L’arc. Never try that yet.
It was a bit risky though. 
L’arc, thanks a million for your help! Works perfectly now. 