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Update with the same package manager you installed with. For npm:
Check which version you have:

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What happens to auto-sync

Auto-sync does not keep an old copy of the CLI running. Every 20 seconds the background service starts the installed resumecontext command, runs one sync and exits. After an ordinary update, the next sync already runs the new version, and the projects you set up keep syncing without any further step. resumecontext daemon start afterwards is still worth running. It re-registers the background service with the version you just installed, and it prints Auto-sync was already running when nothing needed to change.

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If you use a Node.js version manager

The background service remembers the exact Node.js and resumecontext paths it was registered with. With nvm, fnm, Volta or a Homebrew Node.js upgrade, each Node.js version has its own global packages. Installing the update under a different Node.js version therefore leaves auto-sync running the old install, or failing if you then remove that Node.js version. resumecontext daemon start, run with the new version, points the service at the new install. auth and every project command except agents do the same on their own. Confirm it is running:

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Where to install

Install the CLI globally with npm install -g resumecontext. The background service runs the exact resumecontext command it was set up from, so that command has to stay in place: If you installed inside a folder, update from that same folder with npm install resumecontext@latest, then run npx resumecontext daemon start. To switch to a global install, run npm install -g resumecontext, then resumecontext daemon start, which points auto-sync at the global install. You can then delete the folder install.