The portage part of handbook has a chapter titled "updating portage" with subsection on updating portage. The contents however only tell about updating portage tree, and not portage software itself, which appears to be misguiding some people. This is especially confusing since the portage tree has been defined few paragraphs earlier. Reproducible: Always Steps to Reproduce:
Quoting from this chapter: "If you are warned that a new Portage version is available and that you should update Portage, you should ignore it. Portage will be updated for you later on during the installation." I renamed this chapter to "Updating the Portage tree", hopefully this make things more clear.