For me when I updated it, it gave me an update failure, however it booted up fine. And now it is not asking to update again, so I am thinking it actually updated.
However, the inability to return to the home position is not fixed. I was excited to see the update hoping that it would have been fixed but no. In my opinion this is a “stop-ship” issue. The pan cam v3 is completely crippled in performing its basic function properly, that is, “motion tracking” because it can pan while tracking motion, and is completely useless if you have it enabled because it just keeps going out and chasing cars and bird watching. This should be fixed at high priority. Disabling motion tracking makes it not much different than Cam v3 which can’t pan while tracking motion (and I replaced v3 with pan v3).
The issue is covered in detail in the following post as mentioned by @SlabSlayer above:
Wyze Cam Pan v3 - Does not return back to home position - Cameras - Wyze Forum