Yes, the latest version of Mopidy-Local-SQLite depends on Mopidy >= 1.0, so this command will upgrade Mopidy too.
If you want to keep running Mopidy 1.0 even though that isn’t what Pi Musicbox ships with yet, you’ll need to upgrade Mopidy-TuneIn too, ref my previous comment:
If you want to downgrade to the version Pi MusicBox use and the latest matching Mopidy-Local-SQLite, run:
pip install Mopidy==0.19.5 Mopidy-Local-SQLite==0.9.3