Am I correct in assuming by updating the wheels in the car settings it also changes the algorithm for calculating range?
Not in my testing, always gives the same results either way I configure he wheels. The difference is meant to be something like 3% if you drive at 90mph, I imagine it has no measurable effect using more varied driving at slower speeds.
I put them on really as a good luck charm, we drive from Oxford to Kintyre in Scotland once a year, and it takes most of a charge to make it from the last SuC to our destination. Belt and braces approach to making that journey, I've never had good luck with the CPS options there.