How the update works or how iCloud Pairing works?
The update is flashed when they are paired to an iPhone. With them paired goto Settings > General > About and look for Beasts Studio Buds or something along those lines. Tap it. You are looking for firmware version 10M359. Just use them normally until it decides to update the firmware if it isn't already.
iCloud Pairing just shares your Bluetooth settings around all your Apple devices. For the most part you can just pop the ear buds in your ears and they will connect to the device you are using. Although with the AirPods I always unlocked the phone and opened the case near it so I could see the pop up on the screen just to insure it was going to connect....and not be stupid....