I checked through all the posts mentioned above and still spent ages trying to get this to work.
The hint on the official HOWTO for upgrades in Step 3 helped a lot: You need a new Product/@Id
to disable the message "Another version of this product is already installed".
I used this upgrade section (child of Product):
<Upgrade Id="$(var.UpgradeCode)">
<UpgradeVersion Minimum="1.0.0"
IncludeMinimum="yes"
OnlyDetect="no"
Maximum="$(var.Version)"
IncludeMaximum="no"
Property="PREVIOUSFOUND" />
</Upgrade>
Note that OnlyDetect
is set to "no". This triggers the removal of the old version, if you have the following section (child of Product):
<InstallExecuteSequence>
<RemoveExistingProducts After="InstallInitialize"/>
</InstallExecuteSequence>
Also note that apparently, only the first three components of the version number are used to check for upgrades...