I see what you mean if you create a DB and create it as "DB of type" and then "UDT1" in your example. I do not know how to update this DB.
However, when I create a DB to reference a UDT, I create the DB as type "Shared DB". At this point, there is no relationship to the UDT. I then open the shared DB. I give it a symbolic name in the name column, then in the type column I type in the UDT name ("UDT1" in your case), and finally, clear/delete the value in the initial value column.
If you change from Declaration View to Data View (View -> Data View), you can see all the components of the UDT.
Now, if you change your UDT, you can update the DB using either the method Simon or I suggested in the previous posts. You will not need to delete the DB and recreate it.
Now I could not find anything on DB of type UDT. What is this used for that is different than the shared or instance DBs? Am I missing out on something?