macOS includes an "Update" volume ever since macOS 10.15 Catalina. With later versions of macOS this APFS volume tended to be hidden by default and has morphed more into an APFS snapshot. The Update volume/snapshot is used by macOS to stage OS updates.
The only time I have ever seen macOS show the "Update" volume/snapshot to a user in the Finder is when an older version of macOS is booted alongside a newer version of macOS. The older OS doesn't know anything about this "Update" volume.....even if the OS does know about it, it may still not understand newer variations to it that a newer version of macOS may utilize. There is a lot of behind the scenes magic being performed by macOS to handle the newer complex boot drives (these layouts seem to change ever so slightly with each new major version of macOS).
If the "Update" volume is mounted under "/System/Volumes", then do not unmount it even if it is possible since macOS expects it to be there. If it is mounted under "/Volumes", then it is Ok to unmount it since it is not associated with the currently booted OS. According to the EtreCheck report you only have a single version of macOS installed to the internal SSD so do not unmount the "Update" volume.
General Rule: Unless you want to understand macOS a bit better, it is best not to go looking into folders outside of those in the "/Users" folder. Everything else belongs to the macOS system and should not be touched.