From what I read on DevZone it seems that there is a limitation in nrfutil when needed to update BL+SD+APP. NRFConnect over BLE manages the 2 separate downloads (BL+SD and then APP) for the user to make it "look like" a single operation. Nrfutil as a serial master (over UART or USB) can only do the combined update as 2 separate operations from the User's point of view (i.e, first load the BL+SD image and then repeat for the APP image). In other words, please confirm that nrfutil does not handle the automatic connection reestablishment after the BL+SD update completes to load the APP image, and therefore using a combined BL+SD+APP image with nrfutil over serial is not possible.
Thank You