I'm guessing the -y was meant to be on pkg upgrade, instead?
from pkg help update:
pkg update [-fq] [-r reponame]
pkg update [--{force,quiet}] [--repository reponame]
* Update install docs for FreeNAS 11.2
This includes some best-practice improvements (such as running Home
Assistant as a limited-access user vs root), using Python 3.7 to install
and adding a BSD-style service to manage and test configuration.
* Fix typo
* Update freenas.markdown
The example provided for a chained command to mkdir /home and /home/.homeassistant was missing the second mkdir command. A copy and paste of this example would fail.
* Update freenas.markdown
Updated mkdir commands to use '-p' option.