One thing that regulators need to be very careful about is how "security updates" are defined, and exactly what manufacturer obligations for issuing security updates should be. CVEs are a notoriously terrible representation of actual security risks, so a measure like "manufacturer must issue new releases that include any released patches for CVEs with a severity rating greater than 9" would be a clear non-starter.
There are also often practical issues related to security patching embedded devices: for example, a downstream supplier's driver can make it impossible to upgrade a kernel unless/until the supplier provides a fix. Of course, strong regulation here could help to drive bad practices like that out of the industry, but I'm not going to hold my breath on that one. The effect of regulation like this would make it harder for manufacturers who don't have the market power to lean on their suppliers to provide security patches.
Finally, it's important that any regulation that mandates or strongly encourages software updates also mandates that the update system itself be implemented in a secure way. This is my specific area of expertise, and I can tell you that it's very often done very badly. A bad update system is a gigantic, flashing red target for attack. So something like mandating signatures (and sig validation) on software update images would be a good start. Mandating the use of TUF-compliant repositories would be even better.