Outline: Installation and update fixes

[tremor021]

✍️ Description

This PR addresses the changes introduced by the latest update to the app. The update function now completely removes the application folder and rebuilds it from source. All app setting are preserved as everything is configured via .env file.

Postgres database should be backed up as per developer instructions, just in case.

🔗 Related PR / Issue

Link: #3831

✅ Prerequisites (X in brackets)

• Self-review completed – Code follows project standards.
• Tested thoroughly – Changes work as expected.
• No breaking changes – Existing functionality remains intact.
• No security risks – No hardcoded secrets, unnecessary privilege escalations, or permission issues.

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🛠️ Type of Change (X in brackets)

• 🐞 Bug fix – Resolves an issue without breaking functionality.
• ✨ New feature – Adds new, non-breaking functionality.
• 💥 Breaking change – Alters existing functionality in a way that may require updates.
• 🆕 New script – A fully functional and tested script or script set.
• 🌍 Website update – Changes to website-related JSON files or metadata.
• 🔧 Refactoring / Code Cleanup – Improves readability or maintainability without changing functionality.
• 📝 Documentation update – Changes to README, AppName.md, CONTRIBUTING.md, or other docs.

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🔍 Code & Security Review (X in brackets)

• Follows Code_Audit.md & CONTRIBUTING.md guidelines

📋 Additional Information (optional)