Hello @eric_engineer and @chuck_toddN7PTC ,
I hope you're both doing well. Deleting the part and re-inserting it is never the answer.
Some explanations are in order. Firstly, the UPDATE command will always work but >NAME and >VALUE are handled in a special way. Once a part is inserted into a design the refdes and values will not be touched by the UPDATE and REPLACE commands. The idea is to guarantee that any changes you make to either the value or refdes will be preserved when an UPDATE or REPLACE operation is executed.
So how do you really update the refdes and value formatting? Use the Reposition Attributes command set to Restore Default. This will set the format of the reference designators to match whatever you have defined in the library. Try it and you should see that now the text look as you expect.
This all naturally flows from the fundamental behavior of Electronics that the sch and 2D PCB are always in sync, which I may add is the one true way (JK I know other tools don't live sync).
Let me know if there's anything else I can do for you.
Best Regards,

Jorge Garcia
Product Support Specialist for Fusion 360 and EAGLE
Kudos are much appreciated if the information I have shared is helpful to you and/or others.
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