I am not advising you to do the same. But I have owned a Switch on SX OS, for 6 to 7 Months and every time I need to update the system I turn the switch off take out my SD card turn it back on into normal firmware and then update the system officially. I have completed at least 6 or more updates like this and never had a problem with my Switch getting banned.
I do not play games online. I also manually update all of my games.
I officially update the Switch System firmware only.
Just updated to 7.0.1, No problems