so my controller keeps moving up when i try to select an app or game. the support agent...

Hi, i've selected "keep my games and apps".

I would try the other option this evening.

Is it okay to move my games to the external drive, disconnect it and connect it when the Xbox is ready again?

If the issue still isn't resolved, try uninstalling the app and then reinstalling it. Here's how:

1. On Home, move right and select My games & apps.
2. Highlight the content you want to uninstall.
3. Press the Menu button
   on your controller.
4. Select Uninstall.

If you keep experiencing the problem, contact
Xbox Support

Usually it should pop up saying "Sorry dude, your internal storage is gone, do you want to install on external" , but not always. I would move the game you are trying to update to the external drive and try to do the update again.

You can move games/apps by selecting the game in My Games & Apps > "Press Menu button on controller" > Manage Game > Move all > Move

Hello Vincent C, My name is David. I am an independent advisor, happy to help you today.

This seems easy to solve.
Make sure your console is connected to the Internet and Keep my games and apps up to date is enabled. To do so, follow these steps:

Press the Xbox button on your controller to open the guide.
Select Profile and system
setting
system
Updates
Under “Updates,” make sure Keep my games and apps up to date is enabled.
Check if there are any pending updates for your games. To do so, follow these steps:

Press the Xbox button on your controller to open the guide.
Select My games and apps.
Select Update all or select the individual games you want to update.

Best regards.

Can you try pressing the Xbox button on the controller to bring up the guide then select System Tab / Setting / System / Updates and make sure the option to Keep my games & apps up to date is ticked.