Maybe firmware update, maybe just software update. Hard to say where (firmware, software or both) the "problem" is.
For sure, though, what is happening, is that something (sw or fw wise) is locking up or getting trapped in a loop and is unable to reset the hardware watchdog timer, so after the watchdog timer counts down, it does it's job and resets the CPU, thus the reboot.
My gut guess is that it's a software problem, not firmware. Usually software is the part responsible for minding the WD.
Fred