Sorry you are having problems.
Issue #1: The Time Zone is set from the system setup menu, not the iFly app. So if you are in the app touch Menu -> Exit Application -> Shutdown, this will return you to the system menu. Touch Setup from there, and you should be able to find the time zone. If this is really changing on it's own, something very strange is going on with your unit. It should only change when you change it, app updates shouldn't be able to affect this.
Issue #2: The procedure for updating the 700 has always been to shut down the navigation app to look for the USB updates, I don't think this has changed in many years.
Hope this helps,