I do not understand how to update, the only thing I see is download the latest version and install on top of the previous version
that is correct
the other is to uninstall the current version and then install the new version and the wallet will not touch
Correct... you simply run the installer for the new version and it will overwrite the old version. Also, uninstalling will NOT delete the wallet files, this is a safety measure by the devs so that you don't accidentally lose your wallet if you accidentally uninstall the app by mistake.
and on keeping a safe copy of the wallet is to copy and paste nothing else, that is what is referred to as a secure copy
thanks for answering
Not sure what you mean by "secure copy"?
You can create copies of your wallet file and store them offline (on external drive or USB thumbdrive etc) if required. You can create the copy from within Electrum using "File -> Save Copy".
NOTE: If your wallet file is password protected then the sensitive data in the wallet file (ie. private keys/seed mnemonic etc) are encrypted which helps to protect your coins should the wallet file get leaked.
Arguably, the "best" way to "backup" the wallet, is to make sure you have an offline copy of your 12 word seed mnemonic, written down and stored safely and securely.