Lookatme sends system notifications to the email address or addresses entered in:
Settings > More details > Email

Best practice is to use a group email address such as images@ and ask your email manager to forward all the emails to your Administrators.

You can enter multiple email addresses separated by comma space, for example:

images@sample.com, me@sample.com

The Receive Update emails setting relates to the targeted emails that you can send to users from Lookatme. This setting is different from the  system notifications setting.