Here is a piece of information in a Unity blog post
HOW UPDATE IS CALLED
No, Unity doesn’t use System.Reflection to find a magic method every time it needs to call one.
Instead, the first time a MonoBehaviour of a given type is accessed the underlying script is inspected through scripting runtime (either Mono or IL2CPP) whether it has any magic methods defined and this information is cached. If a MonoBehaviour has a specific method it is added to a proper list, for example if a script has Update method defined it is added to a list of scripts which need to be updated every frame.
During the game Unity just iterates through these lists and executes methods from it — that simple. Also, this is why it doesn’t matter if your Update method is public or private.