Depends on the situation. If you are running a large application using jQuery 1.2.6 or something old (e.g. 1.3.2), it may not be easy to keep up with the deployment of new versions of the application with updated jQuery libraries. You will have to keep up with the changes (for example, changes to b / w 1.5 and 1.6 with changes to data and attr ). If your application makes extensive use of jQuery, this can be a lot of testing for your testers (if you're lucky to have testers). :)
In addition, if you use plugins, you are not guaranteed that they will be compatible with newer versions.
There are many reasons why people are still in older versions. I am sure that others will post other reasons.
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