reflect the current os

This would certainly be a nice feature. We've let our developers know about your request so that it can be considered for future Cloud Manager updates. In the meantime, an option for viewing the correct updated distribution would be to edit the name of your configuration profile in the Disks/Configs tab. You would need to click the "…" next to the configuration profile, then select Edit. This wouldn't change the original distro being listed in the Linode's Summary tab, but it would help to keep track of your current version in the Cloud Manager.