Changes in Windows Installer 5.0 are not of interest for this situation; they relate to failure configurations.
Since uninstalling the application manually from the control panel deletes the service, it becomes clear that installing a new version does not delete the previous one. To check why you need to create a verbose log and check the standard RemoveExistentProducts action. To create a log, use this command
msiexec / i {msi path} / l * v file.log
You should know that you must change one of the first three version numbers to make sure that the OS is considering a new service pack, the fourth is ignored. In addition, you must ensure that the packages have the same installation type, that is, on the user or on the machine. If the installation types are different, the update is skipped.
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