Just ran into this issue today, and noticed that as of 3/9/2016 it was 
fixed. Time to do a "gcloud components update"

On Monday, October 5, 2015 at 12:39:29 PM UTC-4, Michael Spainhower wrote:
>
> Ah, found the answer myself in the gcloud release notes at 
> https://dl.google.com/dl/cloudsdk/release/RELEASE_NOTES
>
> In a future Cloud SDK release, deployments that promote the new version
>>       to receive all traffic will stop the previous version by default.
>>
>>
> Great to hear.  Thanks! 
>
> On Sunday, October 4, 2015 at 4:02:29 PM UTC-4, Michael Spainhower wrote:
>>
>> Could anyone from Google comment on whether there is a plan to fix this 
>> issue?  Versions that are not getting traffic really shouldn't have 
>> instances constantly running.  Only using (and paying for) the resources 
>> that you really need and use is one of the key value props of Google Cloud 
>> and GAE.
>>
>> On Tuesday, September 15, 2015 at 7:15:10 PM UTC-4, Jeff Schnitzer wrote:
>>>
>>> I have a python app on a Managed VM which I deploy with:
>>>
>>> gcloud preview app deploy app.yaml --remote --set-default
>>>
>>> It's set to manual scaling, instances 1.
>>>
>>> It appears that every time I deploy it, the old instance stick around 
>>> (and get billed for). Even deleting the old versions from the appengine 
>>> console didn't shut down the compute engine instances. I had to figure out 
>>> which compute engine instance was my "live" one and delete all the others 
>>> from the Compute Engine part of the console.
>>>
>>> Is this supposed to work this way or is there a better workflow? I just 
>>> want to deploy the new version and have the old version go away... like 
>>> regular App Engine.
>>>
>>> Jeff
>>>
>>

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