Wlork Step 2 is for updating extensions, so if you have an outdated extension you have to do it.
But i have suggestion for you. Juts install Extiverse on your Flarum. This service will check your core and extension's version so you can easily find whatever need to update.
For installing Extiverse and add panel to you admin, just run this:
composer require extiverse/mercury:*
Then you have to signup here and get your API: https://extiverse.com/
Other way to check outdated extensions is running this command:
composer show --outdated
And now you can upgrade you extensions 🙂