A. No. If you check for updates that are hidden by default in your XP Mode VM, you'll see it's actually Internet Explorer (IE) 8, which would replace Windows XP's default IE 6.
The update is hidden because many people use XP Mode both to run applications that won't work in Windows 7 and to use Internet Exporer 6 with plug-ins and code that won't work with IE 8 or later. Microsoft hides the IE 8 update by default to stop people from accidently replacing IE 6.