Turns out the issue was with one or some of the layered packages I had. After uninstalling, the CLI method to upgrade worked. See the post below, but thanks for your reply.
So basically it's not allowing me to update because of these layered packages and every time I want to update, I have to uninstall them and reinstall after I update?
I have two entries each with a different BaseCommit. One has dnf-automatic, libreoffice, vpn app. The other has the same three plus rpmfusion-free-release and rpmfusion-nonfree-release.
I just recently installed the rpmfusion packages but I didn't know what I was doing. Just found something online suggesting an alternative update method for Silverblue.
Thank you for the thorough explanation. It makes sense to me why I had the error that I did. I'll keep this in mind next time when I consider using a bitwise operator.
The idiom allowed it to pass the checker's tests! Thanks for your help!