Going back at least 30 years (and if memory serves me right 40 years) 
IEBUPDTE cannot delete members, only add or change them.  cf GC24-5091-4 
OS/VS1 Programmer's Reference Digest (FE manual) p 8-29.

IBM Mainframe Discussion List <[email protected]> wrote on 02/23/2006 
03:55:58 PM:

> No. It means that the default behavior of MOD is changed. It means the
> PDS pointed to by SYSUT2 will contain only members added via the
> sequential input stream. If the input stream is empty, then the PDS will
> be empty. 

> And it works as advertised in the FM, now located on the DFSMS
> bookshelf. 

<snip> 
> >IEBUPDTE PARM=NEW has worked for me. 

> Huh! Doesn't that simply mean that the member is new?



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