First, open the aio interface and create a backup and start your containers again after the backup is successful.

Afterwards, run via CLI:

Go into the container

sudo docker exec --user www-data -it nextcloud-aio-nextcloud bash
#Now inside the container

Switch to the beta channel

php occ config:system:set updater.release.channel --value=beta

Run the update

php updater/updater.phar --no-interaction --no-backup && php occ app:enable nextcloud-aio --force

Switch back to the stable channel

php occ config:system:set updater.release.channel --value=stable

Exit the container

exit

The above instructions should upgrade you to Nextcloud 29. You might need to follow the steps a second time to reach NC29. If something goes wrong, feel free to restore the backup.