It updates to the current 1.94.2 version first (the minimum), then storagenode-updater will check for a new version and check is it eligible to update this node (by NodeID) to the newest version (the suggested 1.96.6), if so - it will update itself, then update the node. But until then it will run the minimum version.
You may check your logs docker logs --tail 10 storagenode and your dashboard, likely it’s already updated to 1.96.6.