Why can't my HTC one m8 receive some texts/install an update?

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AC Question

I have had my HTC one m8 for almost 2 years. About 6 months ago, I noticed that I was not receiving some texts from a handful of people (sometimes I do, sometimes I don't). The phones from the other people vary from service and device (HTC/iPhone and Verizon/AT&T). I am able to send texts/pictures.
-No contacts are blocked
-I can receive SMS and MMS from most people

Also, my phone is currently on Android version 5.0.2. It says that there is an update available for my phone but when I try to update it, it will download the update, unzip the file and then go into recovery mode. I later found out that my specific phone is not ready for the Android Marshmallow update but there is a newer version of the Lollipop available.

Are the two issues connected? I have talked with HTC support and my service support and both tried to troubleshoot various things. I feel like after talking to both, I am back at square one. Is my only option to factory reset the phone? I would rather not do that but if that is my only option, I will.

Phone: HTC one m8
Service: AT&T

*I am not tech savvy but I will try my best
 

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