Reading your response made me remember I had the same issue. However when I tried booting a game, I got the system update prompt which I accepted then installed the system update.
Most consoles nowadays are shipping with a firmware of 4.1 or higher. If you buy the Mariko Switch (the one in the red box), it'll be on 8.X
I think the issue is just SX OS' external launcher meaning you cannot launch other CFW with SX OS but I believe Hekate is capable of launching both SX OS and non-SX OS CFW.
If thats the case I think I can only update in OFW. If I have my jig in all time. It will be safe during restart correct?