When I click the option to reboot ans install, it boots to a software update screen
You use the word “boots” here. Then,
it reboots again to the system.
Now, you use reboots accompanies with “again”. Therefore, I will assume that the previous “boots” meant to convey a reboot. As for my actual question, does your system do a full reboot the first time? So, is it technically possible to access GRUB in-between and does it ask you to fill in the LUKS-password (if you’ve enabled FDE) etc?
Finally, is this on Fedora Silverblue? Or just plain ol’ classic Fedora?