If they put in the correct units, then both A/C's should run as heat pumps. If they replaced one of the originals with an "A/C only" model then you lost the heat pump function.
Upgrading the firmware should be a fairly trivial process. No different than doing an update on your phone. One would guess that if you are on 1.x and the rest of the world has moved to 3.x (or past that), you most certainly need an update. It is possible that multiple parts of the system need updates. Still trivial, but time consuming.