How do you update Oracle release 12 which i installed 4 months ago and also Linux itself which is asking me for a CSI # when i try to update it using the red button on top. i am getting a lot of errors when i try to do some of the tasks from the tutorials.

By update do you mean upgrade?
Could you please post the image of the red button? I am unable to relate which red button you are talking about. Thanks.

when you are on the oracle virtual machine desktop on the right hand top corner to the left of the date there is a red circle with a ! in the middle and when i point at it it says 202 updates available but when you click on it, it asks for subscrition information -unbreakable linux network login. is this the only way to update?

I think what you are referring to are updates to Linux operating system, not to Oracle E-Business Suite. You should not be worried about updates to the operating system, if your core focus is to learn the functionality of Oracle E-Business Suite. If you are interested in upgrading your Oracle E-Business Suite (e.g. from 12.0.6 to 12.13 etc) then you should consider reinstalling a newer version on a separate virtual machine. Upgrading Oracle E-Business Suite is a lengthy technical procedure that will take away your focus from learning the functionality. It is very easy to get distracted if you are not focused.
If you are facing errors while trying to replicate what you have seen in videos, then post the error messages preferably with screen shots.