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Sorry I missed this post before...
I'm no expert, but I just had a look at my GC log and had a bit of a play.
I'm guessing that the picture of the model that you shared comes from the "summary and details" panel, right? If so, then I realise that mine doesn't update when I manually adjust my CP and W' values either. I think that this is because this panel only shows the W' and CP values as calculated by Golden Cheetah's model, and that the numbers reported are the estimated values at the time of that particular ride. If you click back through your previous activities, you should see that at some point these numbers change to reflect the what GC estimated your CP and W' values to be at the time of each ride.
If you look on the "Trends" page, you can add a graph called "CP Analysis" (it's one of the preset metric trends) which shows this historical trend in your estimated CP. I've set the chart to show my:
estimated CP (using GC's extended CP model; yellow)
configured CP (My own manual estimation of CP (usually 0.95*[10mile TT power]; blue)
estimated W' (using GC's extended CP model; red)
CP20, and CP60 values (pink).You can see from my chart that recently, my estimated W' has been falling as my estimated CP has been recovering... This is apparently normal as I'm currently focusing on TT's and am therefore fleshing out the right hand side of my CP chart (durations >5min) more than the left hand side (durations <5min).
In terms of estimating values such as TSS etc. I THINK that GC will only ever use the values you enter manually... the estimated values just allow you to track trends through time and tell you when you might want to update your manually set values.
I don't think it does, but I'm not certain. I think all the metrics are based off either CP or FTP.
Where are you trying to update it? Periodically I just read the numbers off the CP plot and manually enter them into the "power zones" tab on my athlete preferences... it seems to work for me.