Can you not update Disc titles?

It works like a real PS3.

You can boot disc games from every directory except dev_hdd0/game to avoid conflicts.
Game updates are installed to dev_hdd0/game as that's directory for game data, you can't write on discs because they're read only.
The disc will always be 1.00 or whatever version came on it. If you want to see installed Game Data on the GUI, enable Game Data on View -> Game Categories menu.

Ah, thanks so much. I enabled it on the GUI.

Appreciate your help! It must be difficult to manage this entire sub forum by yourself. I'm going to start donating ASAP to RPCS3 because I think what you guys are doing here is very valuable.