How-to update to latest beta? Node-RED 3.0.0-beta DietPi

Its not very clear what command you run to install it.
From what you have shared .. Stopping and starting the service will not update it.

In the top post of the Node-RED 3.0.0-beta.3 released thread it mentions how to install it.

sudo npm install -g --unsafe-perm node-red@next

Is this command what you tried ?