What do you see whne you run this in the console?
list -s |grep zwave
If you have manually installed the zwave binding, you need to delete the jar from addons. If you have never installed the zwave binding, you need to run bundle:install instead of bundle:update.
Although, I may understand this better… that message may be due to the version change. Uninstall the zwave binding…
bundle:uninstall org.openhab.binding.zwave
Then run…
bundle:install https://openhab.jfrog.io/openhab/online-repo-snapshot/2.5/org/openhab/addons/bundles/org.openhab.binding.zwave/2.5.0-SNAPSHOT/org.openhab.binding.zwave-2.5.0-SNAPSHOT.jar