It is not look like a “broken update” issue in Bitwarden itself, more like a permissions problem on the server. The key line is: permission denied for /home/bitwarden/bwdata/docker/docker-compose.yml
which means the Bitwarden user no longer has proper access to the data folder, so the update script can’t read or rebuild the Docker setup correctly. just check the folder permissions first and make sure everything under bwdata is owned by the bitwarden user again, then rerun the update. In most cases that alone fixes it. The docker inspect error is probably just a side effect of the script failing halfway through because it couldn’t access the compose file.
Not sure what is going on with the formatting of your posts. You are not formatting the code blocks (linux commands and outputs) correctly, so they are very difficult to read. However, when I try to fix the formatting for you, somebody is immediately editing the post to revert the formatting to its original, illegible form. If this is you, could you please stop undoing the formatting fixes? Even better, could you please just format your code correctly to begin with?
Before pasting any code (e.g., linux commands and outputs) here, place the cursor on a new line, click </> in the editor toolbar, and only then paste your code. If you have to add any commentary, first move the cursor out of the formatted code block.