Ok so I feel like clearing this up because I've seen confusion about it in various threads.
TLDR: Some people say it's bundled with a certain firmware. This is not true. The SDXC update is separate from Firmware updates.
I tested this with my own Switch and my friends Switch. I had a Switch in 3.0.2 (that was the newest version back then.) and checked for updates. No updates were available. Then I inserted the Micro SDXC card to my Switch and was immediately prompted to update. I updated, and when I checked the firmware it was still 3.0.2. Later I inserted the same card to my friend's 4.0.1 (newest version at the time) and the same thing happened. Immediately prompted for an update that after it was done, the firmware stayed the same. The only thing left to test is that if you have a Switch with a firmware that isn't the newest and you do the SDXC update whether it would update your firmware as well or just apply the SDXC update.
Edit: Replies have shown that if you want the SDXC update (Which is in fact a compatibility for exFAT update) you can't just update since Nintendo will bundle a firmware update. What you can do is install the update manually.
TLDR: Some people say it's bundled with a certain firmware. This is not true. The SDXC update is separate from Firmware updates.
I tested this with my own Switch and my friends Switch. I had a Switch in 3.0.2 (that was the newest version back then.) and checked for updates. No updates were available. Then I inserted the Micro SDXC card to my Switch and was immediately prompted to update. I updated, and when I checked the firmware it was still 3.0.2. Later I inserted the same card to my friend's 4.0.1 (newest version at the time) and the same thing happened. Immediately prompted for an update that after it was done, the firmware stayed the same. The only thing left to test is that if you have a Switch with a firmware that isn't the newest and you do the SDXC update whether it would update your firmware as well or just apply the SDXC update.
Edit: Replies have shown that if you want the SDXC update (Which is in fact a compatibility for exFAT update) you can't just update since Nintendo will bundle a firmware update. What you can do is install the update manually.
Last edited by Breeze926,