Hey Aaron Hattenbach,

The automatic updates feature is only available once you have activated the plugin. You can find activating instructions here: https://support.kreaturamedia.com/docs/layersliderwp/documentation.html#activation

Please note that some themes are restricting the update and/or activation method of the plugin that could result in similar problems.
So if you've had the plugin installed earlier with a theme, I'd recommend to manually update the plugin by downloading the newest release from CodeCanyon and reinstalling LayerSlider. 

You will need to completely remove the bundled version first, as there cannot be two instances of the plugin present on your installation.
Please note that your sliders and settings are stored in the database so they won't be deleted in the process.

You can find detaled installation instructions in the documentation, please refer to the following URL: https://support.kreaturamedia.com/docs/layersliderwp/documentation.html#plugin-setup

After the reinstall there should be no more error with the updates or activation.