The modifications are cumulative - if they change something in the new version, all the previous changes (generally) are left in place. I say "generally" because sometimes previous changes will be removed if they caused problems.
What the BIOS update does is overwrite the entire BIOS - it doesn't just implement little patches here and there. It rewrites the entire thing. This is why the updates have to be cumulative.
i ONLY update bios when i upgrade(hardware) something or if i encounter any bios related issues... don't want to hassle myself if ever bios update fails... there is no need to update bios if you're not having problems or if you're not uprading/adding any hardware to your system IMO...
I only update my BIOS if it will fix a problem I have, or if it's required for a newer CPU. It's best to leave it alone if everything is working, because I did kill a board once flashing the BIOS.
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