does it wipe setting when updating firmware?
Earlier versions did not.
It is worth noting that if you have kept previous firmware upgrades on your SD card, when you go to install the new firmware, it'll ask you if you are trying to install the oldest firmware on that card first. Answering "No" will then bring on the prompt asking if you wish to install the next oldest firmware, and so on until the newest one appears. So there is no need to delete the older firmware updates, in order to install the new update, but of course there is no particular need to keep them either...