ahh those emission codes only apply to the S40 / V50 not V70 !
A 2007 V70 D5 would have a particle filter .. you can check by looking under the car it looks like a silencer at the front just forward of the footwell , it will have two thin pressure pipes attached ( one at each end ) and a temperature sensor ...
I would have the software upgrade because any problems later and you wont get any help if you turn down the help they are offering now .
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 My comments are only based on my opinions and vast experience .
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