(Note: I've set new tabs and windows to open with a blank view, which may also make a difference, as there is no default content.)
Similar to most programs, you can change certain behaviors in the settings of the program. For Firefox update behavior:
Settings -> General -> Firefox Updates -> "Check for updates but let you choose when to install them".
Or, you can choose "Automatically install updates" and subsequently check "When Firefox is not running".
Either way should address your issue.
As I get it from other comments, this is not a problem with the built-in updater (as on Windows). On linux, when updating via package manager, you should now this can be an issue with any program. Yes, most programs survive running while being updated, but for a complicated piece of software (like a browser) this behavior is understandable.
See the Arch wiki for updating on Arch: https://wiki.archlinux.org/title/System_maintenance#Restart_...
The point is that this is poor default user experience, and it should not be this way.
Those settings don’t do anything bec even when I select “Check but don’t install” it still nags me and eventually installs even if corp IT policy is only to update monthly.
I wish there was a way to turn off the nagging too. Why can’t Firefox trust my corp IT to follow their process?
That's why I always update my browsers manually.
This definitely look like an issue with your own setup. But If you did face issues, you can always file a bug.
That is definitely possible. In my corporate environment, I don't get any nags or prompts to update, and when I go into settings it shows "Updates disabled by your organization".
It sounds like your IT left the update prompts enabled, perhaps specifically to let you update at your own convenience and hence avoid the problem you complain about when it forces an update while you are using it.
Not sure which technique the application used, but after few seconds it loaded the error message, and after that I couldn't open new tabs or windows without getting that error.