How to update the Azure CLI

Manual Update

Beginning with version 2.11.0, the Azure CLI provides an in-tool command to update to the latest version.

...

This command also updates all installed extensions by default. For more az upgrade options, see the command reference page. For Azure CLI versions prior to 2.11.0, update by reinstalling as described in Install Install the Azure CLI.

az upgrade is supported on Windows, macOS and some Linux distros as long as installation is supported. It only supports upgrading to the latest version. If you're running the Azure CLI through Azure Cloud Shell, you're most likely already using the most recent Azure CLI install. If not due to cases like ad-hoc release of a minor bug fix version, you need to wait for the next build of Azure Cloud Shell as az upgrade isn't supported in Azure Cloud Shell.

When azure-cli is already the latest version, running az upgrade checks and updates all installed extensions.

Reference: Link