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In order to update the angular-cli package installed globally in your system, you need to run:
npm uninstall -g angular-cli
npm cache clean or npm cache verify #(if npm > 5)
Depending on your system, you may need to prefix the above commands with sudo.
Also, most likely you want to also update your local project version, because inside your project directory it will be selected with higher priority than the global one:
npm install @angular/cli@latest
After updating your CLI, you probably want to update your Angular version too.