Bitcoin.conf problem
walletnotify takes the supplied string and runs it as a command. If you want to make it request a URL, you should pass the URL to a command that can do that.

On linux:

walletnotify=curl 'http://localhost/blocknotify-update-deposit?trxhash='%s


If there's an error while running the command, Bitcoin will append a message to debug.log. It should look like this:

runCommand error: system(curl http://...) returned 3