Anaconda command prompt is just like command prompt, but it makes sure that you are able to use anaconda and conda commands from the prompt, without having to change directories or your path.
When you start Anaconda command prompt, you'll notice that it adds/("prepends") a bunch of locations to your PATH. These locations contain commands and scripts that you can run. So as long as you're in the Anaconda command prompt, you know you can use these commands.
During the installation of Anaconda there is a choice to add these to the PATH by default, and if checked you can also use these commands on the regular command prompt. But the anaconda prompt will always work.
As far as updating conda, if it doesn't work in command prompt, you can do
conda update conda
in Anaconda command prompt.
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