I did no update to my unit yet, but from my other phones I updated I learned that most updates don't need a reinstallation of software/data. As long as the OS number and the memory management do not change there is no need to wipe and reinstall any data. If nothing goes wrong TWRP, root, Xposed and the data will stay intact. Be pepared that the reboot after flashing takes a very long time because any program will be new "initialized".
If the SD card does not work reformat it to FAT32 and it will work. (On Windows use the free "MiniTool Partition Wizard")
Bye for now Fred