AirPod update

I am not sure. I think mine updated with the case closed overnight, but I'm not certain. All I know is the new version appeared - but there is nothing to stop you doing your own test while you sleep. Having the old version for an extra day or so won't break anything.

It is automatic. Leave your AirPods in the charging case and connected to external power, near the paired (host) iPhone with internet connection and the firmware update should happen automatically.