Updating Big Sur, running from external SSD
I am running Big Sur on a late 2015 iMac, and for space reasons had to start running from an external SSD. As others have noted, Big Sur has an issue with setting a new external boot drive and still defaults to booting from the internal drive unless you hold Option down when restarting.
The problem I am running into is when trying to update Big Sur. When it resets as part of the installation process, and I hold down the Option key and tell it which drive to boot from, it doesn't seem to have installed the update. I suspect it's not seeing where to install the update or not knowing to install it to the external drive. Not sure where to go from here but I've tried a number of things and I'm stumped.
I do see an alternative drive that shows up at boot time called "MacOs Installer" which I thought might be the updater, but all it does is restart over and over again and never properly boots or installs anything. Any ideas? Am I just missing some step in this process?