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This is right. Just remember when you leave settings it will go back to NAND not emuNAND. So don't accidentally exit settings, go back in, and then update because they will update your NAND. Make sure it says GW3D and then update straight away.
Hence the "Power off your 3DS" step. If you power it off first and folow that step by step, there's 0 chance of it going wrong