Hello bsdevani,
If you did indeed select "Update", but the iPhone was restored instead, that would mean that there was an issue with your iPhone's software that wasn't able to be resolved by an update.
The next step is to restore from your backup: Restore your iPhone, iPad, or iPod touch from a backup - Apple Support
If you find that you are having issues after the backup restore, you may have an issue with the data included in your backup. In this case, you'll want to restore your iPhone again, and set up as new instead.
Sign back into your Apple ID and select for iCloud to sync information, which you previously had selected. Here's how:
1. Select Settings
2. Tap on your name
3. Tap on iCloud
4. Enable the items such as Photos or Contacts, that were previously synced with iCloud
5. Plug your iPhone into power and connect to Wi-Fi, so those items can sync. It may take awhile, depending on how much data needs to be synced.
Take care!