When you run the scenario, what does that module report?
Does the submitter's token have permissions to update features in that feature layer?
Edit: I wasn't going to post this because I know it's not set up correctly, but it's been working for the last 3 years so I haven't fiddled with it (this is the first time I got an update feature call to work in here, so I didn't change it once I got it working). Posting it anyways just in case it helps.