Tools Release Client Package is provided as binary package, so you must run it on the Deployment Server – what it actually does is to simple replace some files (System and others directories) and put some information in the registry.
All the rest of the process of applying new tools release is done mostly from Server Manager, but Tools Release upgrade is a risky operation – you must rebuild all you pathcodes (build full packages) and redeploy all fat clients so why bothering if it can only be done from SM ?