It says I need to update my phone to use cellular but my phone I updated what do I do?

See these Apple articles below:

If you see No Service, Searching, or SOS on your iPhone or iPad

If you see No Service, Searching, or SOS on your iPhone or iPad - Apple Support

Manually update your carrier settings on your iPhone or iPad

Manually update your carrier settings on your iPhone or iPad - Apple Support

Update your network provider settings manually on your iPhone or iPad

Update your network provider settings manually on your iPhone or iPad – Apple Support (UK)

If you see a Cellular, Ultra Wideband, or Apple Pay Issue message after an iOS update or restart

If you see a Cellular, Ultra Wideband, or Apple Pay Issue message after an iOS update or restart - Apple Support