Update is resetting all data on phone to blank?

Model 6500s-1/Type - RM-240/Nokia PC Suite ver 7.1.62.1 software
I am told by the service people that once you update the phone's software, it resets all the data on it: contacts, messages and files (calendar notes fo all kinds)/
My big question is: IS THIS TRUE?
If so, then what's the use of it? Pray tell! 
Solved!
Go to Solution.

From the FAQs:
The FAQ is contradictory somewhat:
In some models,
and
"... updating erases, but it warns you... "
"If you use your device to update its own software, user data is not deleted."
OK, so let me get this straight.
If I update the ph on its own, it's ok w data, while in some cases, when updating and the data will be erased, the software is warning about it (again, from the FAQs ), so you get an escape chance.
Now, when updating the Suite, once you connect it to the ph, it updates the ph, and so the danger of erasing data is there (in the appropriate cases)?
Is that correct?

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    cmd.jpg ‏55 KB

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