Technically, you will not loose any data nor configuration meanwhile the files are not in RAM. As they create a new droplet, transfer the data and then delete the old one. My recommendation would be for you to create a backup, of the important files, or a full backup of / so you have a copy of all the files if anything goes wrong.

It’s important to denote that these upgrade is not reversible.

Awesome. Thanks for the update.

But will I loose my droplet IP address?