Yes, you can unplug the payer to update with the latest "official firmware" BUT the firmware in the player now is NO LONGER jailbreak. DANGER... When you install any Official/Beta Firmware, you overwrite and replaced the existing jailbreak firmware in the player.
The jailbreak firmware file in the USB is only used once to "update" the player. After the player has been updated, the player now uses jailbreak firmware. The reason why the USB must always be inserted is because the jailbreak firmware in the player need to detect the "special" encrypted key file in the USB. Without this key file, the player jailbreak firmware will behave just like official firmware (enable Cinavia, not allow BD ISO play, etc). This encrypted key file is locked to the player MAC address so the USB can't be used on other players.
Once the player is installed with the jailbreak firmware, it already has all the jailbreak functions. When you remove the USB, the player jailbreak functions will fail to work because it did not detect the special key file.
After removing the USB, when you install the official firmware, the jailbreak firmware in the player have been replaced so ALL the jailbreak functions have been deleted and will not detect the key file in the USB.
CAUTION! Do NOT install any other firmware. Only the jailbreak firmware file in the USB can be used to install or reinstall firmware. When Oppo releases any newer official/beta firmware, NEVER use any of them. You have to wait for those jailbreak people to release newer jailbreak firmware... and then return your USB for them to copy the newer jailbreak firmware file.
A friend once did this. He unplugged the USB, connect the player online to update the firmware with the latest official version. He re-inserted the USB thinking that his latest firmware now uses the latest jailbreak.... he got a shock... no more jailbreak ! Luckily I told him to reinstall using the older firmware file in the USB and now the jailbreak worked. Another friend also very clever... he downloaded the latest official firmware file from Oppo website and copied (replaced) the jailbreak firmware file in the USB !! Then he used this "new" file in USB to update his player. Again... no more jailbreak BUT this time he had to return his USB to re-copy the older jailbreak file so that he can re-install. Hehehe.
Oppo UDP-203... new jailbreak firmware have now been released. I heard that it will cost RM 300+. I also heard that this player chip do NOT support Cover Art in BDMV folder so no jailbreak for this. I don't know whether embedded cover art in FLAC will be displayed or not because I don't have UDP203 to test.