Yes. Why it is restarting is the big question. There could be a number of reasons for this. (Too many 503 errors maybe? A bad application?) To the error logs, Batman!
(You are, though, now seeing the beauty of LiteSpeed's graceful restart feature: You don't notice when it restarts.)
As for the permissions, the permission for the release file are wrong. That's why it hasn't been updated since March and why your system doesn't know what version you have. I don't know how that happened, but deleting everything in the autoupdate directory should allow your server to repopulate the directory with the right files and stop the emails. (Backup first, of course!)
"...of shoes and ships and ceiling wax/ and cabbages and kings,/ of why the sea is boiling hot/ and whether pigs have wings."