Some software like the PCSX2 emulator uses update.7z as a staging file during its auto-update process. Users have reported bugs where this file remains in the application directory even after the update is complete.

A .7z file is a compressed archive created with 7-Zip or other compatible tools. It uses the LZMA/LZMA2 compression algorithms, known for high compression ratios. In most contexts, "Update.7z" is a temporary file downloaded by an application's built-in updater.

Given that attackers use this generic name to hide malicious payloads, always scan the file with an antivirus or upload it to a service like VirusTotal before attempting to open it.

Variable (Legitimate if from trusted software; high risk if found in unexpected directories) Update 7z binary and License.txt #39 - GitHub

If you have encountered an "Update.7z" file and are unsure of its origin, follow these steps to verify it:

Official scripts for Comodo Client - Security use a file named update.7z hosted on their servers to deliver binary updates to Windows systems.