How to set arguments using ash_phoenix form?

An argument by itself is not doing anything. If you want to update the attribute status, you can use accept for that.

    update :update do
      accept [:status]

      primary? true
    end

You use arguments for values that aren’t attributes e.g. when accepting values you want to set on a related resource or if you want the user to input something you use to calculate attribute values.

    update :update do
      argument :status, :atom do
        allow_nil? false
      end

      change set_attribute(:status, arg(:status))

      primary? true
    end

Would also work but is unnecessary if you just accept the attribute