What exactly does it say in Settings - About phone - Android version (tap on it) - /e/ OS version (can be long-tapped and copied to clipboard since Android 10)?
Recovery version 0.17 looks odd. Shouldn’t this match the OS version? But I don’t have the device, I wouldn’t know. (It matches on my device.)
I am a bit confused about the recovery thing. If the Updater shows an update and one is already on v1.0, the download and installation would be done via the Updater. Why is the recovery being used?
As pointed out, the recovery version is not right. It should match the OS. On my two devices with /e/OS 1.1 the recovery has the same version. In your case the recovery should be 1.0 I guess.
On my Teracube T2e emerald 2nd batch there was no issues going from 0.23 to 1.0 to 1.1 using the in-ROM updater (Android 11/R).
Granted, it’s not 1st batch with Q but the update procedure should not be any different.
Depends on the device. There are at least two general ways to update technically.
On non-A/B devices the usual way is that an update package gets downloaded to a certain folder, then the phone reboots into recovery, then the recovery will try to install the update package and reboot afterwards.
On A/B devices, the updater will install the updated OS in the background on the unused slot of the two available OS slots while the user can still use the phone, and the necessary reboot will only switch the actively used OS slot to the updated one.