Address code review feedback: move validation earlier and add test comments

Co-authored-by: swissspidy <841956+swissspidy@users.noreply.github.com>

Author: Copilot

features/plugin-update.feature

@@ -268,6 +268,12 @@ Feature: Update WordPress plugins
       Success: Updated 1 of 1 plugins (1 skipped).
       """
 
+  # Tests for --auto-update-indicated feature
+  # Note: These tests verify the flag handling and error cases.
+  # The actual update behavior when autoupdate is true from the server
+  # cannot be easily tested as it requires mocking WordPress.org API responses.
+  # The update functionality itself is handled by the existing update_many method.
+
   @require-wp-5.2
   Scenario: Show auto_update_indicated field in plugin list
     Given a WP install

src/Plugin_Command.php

@@ -763,6 +763,11 @@ public function update( $args, $assoc_args ) {
 		$all                   = Utils\get_flag_value( $assoc_args, 'all', false );
 		$auto_update_indicated = Utils\get_flag_value( $assoc_args, 'auto-update-indicated', false );
 
+		// Don't allow --version to be set with --auto-update-indicated, as the version comes from the server.
+		if ( $auto_update_indicated && isset( $assoc_args['version'] ) ) {
+			WP_CLI::error( 'Cannot use --version with --auto-update-indicated. The version is determined by the server.' );
+		}
+
 		// If --auto-update-indicated is set, we need to filter plugins by this flag.
 		if ( $auto_update_indicated ) {
 			// Get all plugins with their update info.
@@ -784,11 +789,6 @@ function ( $item ) {
 				return;
 			}
 
-			// Don't allow --version to be set with --auto-update-indicated, as the version comes from the server.
-			if ( isset( $assoc_args['version'] ) ) {
-				WP_CLI::error( 'Cannot use --version with --auto-update-indicated. The version is determined by the server.' );
-			}
-
 			// Process the updates.
 			parent::update_many( $args, $assoc_args );
 			return;