The running version needs to be stopped first and thereafter the executable can be exchanged with a newer version.

If you are using multiple instances of License Server in failover mode and are upgrading to a new minor version (e.g. v1.1 to v1.2), it is recommended that you install the new License Server version in a separate folder in parallel with the existing installation. To minimize downtime and the risk of failed license requests, shut down all instances of the old version and then start the new version.

You can also upgrade the license server installations one at a time. Note that if you upgrade multiple instances, at least half of the instances must always be on the same version (for example, if you have a three-instance setup, at least two instances must always be on the same version). Otherwise, no licenses can be obtained from the license server.
However, license requests may fail because the license servers are asked for a license in the order in which they are defined, e.g. in the CLI call.

Of course all parameters such as a cachefolder need to be used with the new version as well.

Process Cartridges need to be updated to work with newer versions of the program (e.g. pdfToolbox). To do so you should have received an update License PDF using the same serial number as the Cartridge to be updated. You can then update the Cartridge (as usual) with --cartridge and --install.

Credits Cartridges can be used with all versions and do not have to be updated at all.