what date type is updatedate defined as? also error could be due to version of your sql server not ssms?
DECLARE @d DATE = '2005-07-01';
DECLARE @dVarchar varchar(10) = '2005-07-01';
SELECT FORMAT(@d, 'MMM-yy') AS Audit_Month,
format(cast(@dVarchar as date), 'MMM-yy') as _if_date_is_string,
DATENAME(month, @d) as _month,
year(@d) _year