In a high level, you are correct that Ubuntu is a standalone OS like Fedora. Other distributions have used the background packages that make up Ubuntu to form their own OS with changes here and there. It is similar to how Ubuntu is built on top of Debian.
Sure others can explain this better.
On Neo store, f-droid front end, in the settings there is an option to auto update all apps. Also has a one click button to update all apps if you don’t want to auto update.