why does my iphone says error occured when i try to update my iphone xr

1.

Try to free up iPhone device storage see this Apple articles below:

If you need more space for an update on your iPhone, iPad, or iPod touch

If you need more space for an update on your iPhone, iPad, or iPod touch - Apple Support

How to check the storage on your iPhone, iPad and iPod touch

How to check the storage on your iPhone, iPad and iPod touch – Apple Support (UK)

Clear Other storage on your iPhone or iPad

Clear Other storage on your iPhone or iPad - Apple Support

2.

What's the difference between device storage and iCloud storage?

What's the difference between device storage and iCloud storage? - Apple Support

See this Apple article: Upgrade to iCloud+ -< Upgrade to iCloud+ - Apple Support

See also: iCloud+ plans and pricing -> iCloud+ plans and pricing - Apple Support

Manage your iCloud storage

Manage your iCloud storage - Apple Support

3.

See -> How to back up your iPhone, iPad, and iPod touch

How to back up your iPhone, iPad, and iPod touch - Apple Support