I'm sorry, I know that this has become a long thread. I got the impression that I was the only one who got the Settings update, which is why the suggestion to factory reset my phone (in case it was some weird hack). After I factory reset the phone, I got the same notification, and I performed the requested update.
My question is: Did no one else get the Settings update notification? Before doing the Settings update I got the Settings > Search > Night clock error I mentioned above, and afterwards the same thing. No one else seems to be getting this error.
I get nervous when I'm "special".