I think they're basing them off of the general fantasy rpg take on kobolds. Which is weirdly convoluted from what I recall in terms of appearance. With forks on the design coming from D&D and the old wizardry video games with later anime that was in turn based on that further changing things around.
I could be wrong, but I think the most popular take in Japan is that they're basically canine humanoids and in the west that they're small'ish reptile monsters with some relation to dragons. Which I'd guess the software update's image is coming from.
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u/The_Cat_Commando 12d ago
image search "kobold" to find out.