How do I update this?

When I navigate to Settings → Add-ons, I see ‘ESPhome DEPRECATED’. If I click on it, I see that my current version is 2022.3.1, which is old (based on that which I see is available). So, how do I update this?

Replace that add-on with the proper one. ie: different repo. Search the add-on store

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What Dave said - here is the link to the announcement:

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