You will not be able to update the instance template through deployment manager, as it is an immutable object, & cannot be updated. If an immutable object is anywhere in a configuration, the entire configuration becomes immutable, & cannot be changed; even if you try to update a mutable resource, if an immutable resource such as a template is present in the config, it cannot be changed at all. See “Ensure that the resources you are updating are mutable.”.
Best practice is to reference the image template in the configuration with a self link, & keep the instance template separate/out of the configuration/deployment. This way you will be able to change the configuration & update the deployment without any errors. You can’t change the instance template, but you can change the reference in the config/deployment to a different instance template. This is not exactly a rolling update but will give a rolling update effect through deployment manager.
Hope this helps.