Immutable in this context refers to an OS that can’t be changed while running. Steam deck does something like that. Basically the all of the OS system files are read only, so that the user or some malware can’t Bork the system. The only parts that are writable are the users profile directory and the logs.

You can still receive updates and install apps. It’s just that that’s handled a bit differently than with a standard OS.

E.g. it could be that the OS provider only issues complete updates, and then you either have to reboot. This is the case with steam os on the steam deck. The System portion of the OS is mounted read only during use.

An immutable OS is fixed and mounted non-writable. Every update you get, every program you install is handled on top of it via containers or filesystem overlays so the underlying OS is untouched. Basically the same concept you know from smartphones or other devices with a “reset to factory settings” function. No matter how hard you screw up your system, you can always reset to the base OS, either by granulary deactivating things installed on top, or by a reset to the working base OS.