But will it install those updates during the reboot? Or will it update just to apply the updates?

As the Gnome version (non-mutable, meaning not Silverblue) does not update a thing, even a browser. It updates during the reboot, by rebooting into some special state, akin to macOS (and perhaps Windows, haven’t been using one for decades) then it reboots again.

Since the latest update of Fedora (50? I lost the count at this point) it does the reboot even when you ask to shutdown the computer after updates.

I haven’t checked whether dnf update updates things right away (like browser), mostly because that’s a shared family computer, which I don’t touch most of the time. And I try to use it as I use macOS (as a normie would use), just to check out whether it’s a viable system yet. (It mostly is, but there are weird bugs that’s easy to resolve only when you’re knowledgeable of Linux.)

But it does not do the extra reboot and install updates thing. That’s why I’m puzzled why is it there in the first place?