Hello,
my previous post disappeared, unfortunately, so need to write from scratch again.
Hope my input will be valuable, however it is still not complete solution as the project does not work after SDK update. However updating SDK in existing project is interesting as updates of MCUXpresso or SDKs come pretty often.
Let's assume scenario:
- MCUXpresso IDE v11.4.0 [Build 6224] [2021-07-15] and initial SDK_2.x_MIMXRT1170-EVK 2.9.0 (Stage 1013 2021-01-08) Manifest 3.8.0
- Create new workspace and Import SDK example - tensorflow_lite_micro_label_image_cm7

- why this example? because in newer SDK 2.10.0 there is an update for TensorFlow Lite for Microcontrollers to version 2.4.1, therefore we will check if updating SDK works

- how to download change logs? go to your SDK Dashboard, hit particular SDK and then Download SDK Documentation

- Optionally, you can go to your project folder (in my case C:\MCUXpressoIDE_11.4.0_6224_SDK_update\evkmimxrt1170_tensorflow_lite_micro_label_image_cm7) and initialize there git repository to track the changes
- You can check SDK associated with the project as follows:

- Hit Build and there should be no errors
- Update SDK to 2.10.0 with drag-n-drop method to Installed SDK's tab in MCUXpresso
- the updated SDK is now SDK_2.x_MIMXRT1170-EVK 2.10.0 (494 2021-07-15) Manifest 3.8.0
- what is interesting: when you restart MCUXpresso now, SDK associated with project changes from 2.9.0 to 2.10.0 without any major changes in project files (and this looks strange to me, only .cproject has been changed)

- Select project name -> SDK Management -> Refresh SDK Components, you will see:

- Accept incoming changes and probably a whole banch of popups like below will appear (I say 'probably' because when I tested this workflow in current workspace there were a situation when no popups appear at all, so I wrote at the beginning that you should create new workspace)

- You can Replace, Keep existing or Compare
- Please be aware that when you hit Compare and then Cancel it means that you keep existing file without any change
- After few popups with questions about different files, you will see the question about version.h file, so I believe you can treat it as confirmation of changing library version from 2.3.1 to 2.4.1 as mentioned at the beginning

- I clicked Replace for rest of the files to have all news from SDK 2.10.0
- Unfortunately after all these operations, projects does not want to build, there is some problem with gprintf folder and few others, unfortunately no enough time to solve it and I believe some manual work is still required
I could find also some tutorial on updating SDK from Erich Styger https://mcuoneclipse.com/2021/04/27/upgrade-to-a-new-nxp-mcuxpresso-sdk/ however there is also requirement to do some manual work.
Anyway, hope that makes sense (even if partially only) and could be useful. Seems that updating SDK is still bit tricky process, at least for me