You need to follow a "backup > clean-install > manual restore" process to update the box. Clean install requires you to trigger recovery boot mode so the box reads new/updated bootscripts from the SD card; then it can find the new upstream device-tree (configured in uEnv.ini) and the boot files. Once Kodi is installed and running you can copy the backup to the box and do a manual restore of the essential bits (databases, thumbs, sources, add-on settings) and then restart Kodi. Then reinstall new Python3 versions of any add-ons you were using and you're done.
You cannot directly update - it will either refuse the update or if you force it, it will break boot (the box is not bricked, but you need to do the recovery process to get a working system again).
Or you stick with whatever image is on the box now .. if it all still works, nothing is forcing you to update.
Thanks for your reply. I am just trying to find out what the possible benefits are for updating? especially concerning HDR presentation of my 4k files.