I downloaded the 30 day trial version of Ad-Aware Pro Anniversary Edition from Lavasoft. After installation, it showed Ad-Aware Free Anniversary Edition instead of Ad-Aware Pro Anniversary Edition. Managed to run a Web Update successfully.
Also, according to the product comparison, Ad-Watch Live! Basic which provides real-time process protection should be available for Ad-Aware Free but it is turned off as shown for processes even though it is activated by default in the Settings.
So it seems Lavasoft does not want you to test the Ad-Watch function and malware protection. Ad-Aware Free does not provide any real-time protection.