The IOIO v1 that you have can only be updated using IOIOManager on Android. IOIO-OTG uses ioiodude and a PC.
Unfortunately, the IOIOManager way only works with Android <4.1. So you'd need to get one of those if you want to be able to upgrade. An alternative is to use a second IOIO or a PIC programmer.
Last, you seem to be using IOIOManager wrong, please see its wiki page for correct usage.
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