You should first run update, then upgrade. Neither of them automatically runs the other. Additionally, you can use apt-get update && apt-get upgrade to do both ...
This article covers updating via the command line, automating updates for different distros, troubleshooting common issues and kernel updates What does the Linux update... · Troubleshooting Common... · Linux Kernel Updates
1. Before you start · 2. Launch the software updater · 3. Follow the upgrade flow · 4. Enjoy your shiny new Ubuntu! · 5. (Optional) Upgrading to interim releases.