Thanks for your reply, Andrew.

I managed to update the System to the 7 July 2016 release by connecting the AA via wired Ethernet connection to my router.

My experience was that the after going smoothly after pressing the Update button, the update hung at the 60% mark.

I restarted the Iphone. Still hung.

I then restarted the AA. When connected via AA hotspot, yes the update had been installed.

However, I still can't connect to the home wi-fi network.

No, the home wi-fi network does not appear in the WebUI. Neither does the manually entering the network name and password work.

Should I try forgetting the AA hotspot network before trying the last resort of restoring factory settings?

With another IOS device, my Ipad Air 2, I see the AA hotspot but cannot join. The error dialog says that device is unable to join the AA hotspot network.