PS4 to ps5 free game upgrades

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How exactly does that work? You put the PS4 disc into the ps5 and they have a patch that upgrades the game and graphics?

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The update will either install automatically along with the game, or you can press the Option button and check for an update and it should download.

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You don’t physically mail in the disc obviously. But will these upgrades take up a massive amount of storage? Or is it just a patch to the disc?

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How much space it takes up depends on the game, but it shouldn't be too much. For example, the Series X upgrade patch for Maneater was like 6GB, and I assume it's around the same for PS5.

I'm seeing some Reddit threads warning people that the PS4 save data will not transfer to the PS5 in case you already started playing on a PS4.