Yes that’s technically correct. SDR = Software Defined Radio. Yet for some reason, people refer to the USB dongle as an SDR, even though there’s no software in it.
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Your site page shows you are running 10.0.1 as a package install. This indicates you installed the Pi’s operating system yourself and then added the PiAware software either via the pre-built packages supplied by FA through their repository or built the packages yourself from the source code. (As others have pointed out the PiAware software is on your PI not the USB dongle).
In your situation, moving from 10.0.1 to 10.1 will only upgrade the PiAware packages on your system. You installed the OS, so you control how and when the OS gets updated or upgraded.
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Do you know if they send out a notice once its in the FA repository ? Just wondering how long it takes.