Upgrading to 23.05.4?

I am using a Xiaomi Mi Router 4C with OpenWRT 23.05.3.

If I upgrade the firmware to 23.05.4, will I loose my current configuration and setup?

I have a VLAN setup and use DoH with the HTTPS-DNS-Proxy plugin and would hate to loose the current configuration

Is an upgrade to this firmware version essential to maintain router security?

Configuration is upgraded one version ahead like 22->23, inside same version config is kept. Easiest is to use auc or luci-app-attendedsysupgrade which also keeps your installed packages.

Ok, so this is still valid for an upgrade to 23.05.5 ?

The existing configuration would be kept in place if I use Luci's system upgrade function?

I find different guides in the documentation:

https://openwrt.org/docs/guide-user/installation/generic.sysupgrade

https://openwrt.org/docs/guide-quick-start/sysupgrade.luci

This part makes me nervous:

"If you have checkmarked the “Keep settings” checkbox in the previous section and the system fails to boot after flashing, you need to consult the failsafe mode, to manually reset all settings. Otherwise you need to start configuring from scratch."

What's the correct approach?

Yep, works just fine, click on attendedsysupgrade and all packages upgrade+move to readonly filesystem maintaining all ocnfigs.