No, a standard system update does not delete your saved games, game data, or Xbox Live profile. These are stored on your hard drive or memory unit and remain untouched by the update process.
When you download an official Xbox 360 update, it is not a single .exe file. It is typically a compressed folder containing: i--- Xbox 360 Dashboard Update Download
If your console gets stuck in a loop trying to update, turn it off, remove the hard drive, insert the USB update drive, and turn it back on. Once the update completes, turn off the console and reinsert the hard drive. No, a standard system update does not delete
A prompt will automatically appear if an update is available. Select . 2. USB Flash Drive (Offline) turn it off