We don't need to do anything else except upgrading the extension. 1.7.0 release doesn't change existing APIs but adds new features and fixes bugs, so our code depending on 1.6.2 extension will not break.
As for the new features, some of them are related to DurableOrchestrationClient which is not implemented in current JS SDK, so we can't benefit from them unless SDK is upgraded. We can try others like call built-in HTTP API for starting new orchestration, e.g locally call http://localhost:7071/runtime/webhooks/durabletask/orchestrators/{functionName}
to strat new orchestrator instead of using Http trigger as a starter.
About Durable Functions commands in Azure Functions Core Tools, the new release of Cli has not been pushed to npm so we can't update it as well.