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RE: Dash Masternode - when is the optimal timing for updating?
"Does updating put me back to the beginning of the payout queue?"
I think that's only the case if the new version contains a protocol update. (At least from what I read here: https://www.dash.org/forum/threads/version-12-2-release.17807/page-3#post-146156 )
"am I legit to recieve masternode payment if I am not on the newest version?"
If you're not waiting multiple payment rounds there shouldn't be a problem with the payment. :)
But I'm not a MN owner myself so maybe you should ask this questions on the Dash Nation Discord Server or at the forum. :)
Great - Yes I heared of the differences between minor updates and protocol updates. Need to check that and probably follow up on this.