This update seems to have broken Bluetooth on my system. I can no longer use my Bluetooth mouse. It refuses to pair.

Any news on the progress towards Bazzite GDX? I noticed the image selector still only shows DX, and I'm not sure if it's stable enough to rebase onto yet

Is this update automatic?

provided you havent disabled automatic updates and you dont have any layered packages causing issues with updates, then yes like all updates it should download automatically in the background and apply on next reboot.