update 8.2.7 to 8.3.0 with composer
Taken from: here

You need to make sure that drupal/core is in the require part of your composer.json and not the replace part, it won't work otherwise.

Haven't tested it yet, but it explains the Package "drupal/core" listed for update is not installed. Ignoring. message.

In case someone's looking for the way to upgrade using drush:

drush up drupal