Thank you all for your replies.

@Sean: 
If I remove the UpgradeVersion elements, it keeps all the installation, ie
when I go to Control Panel\Programs\Programs and Features, my installation
shows up multiple times, as many as the number of times I install.

@John: 
When Schedule="afterInstallExecute" or "afterInstallExecuteAgain", the
installer CORRECTLY does NOT override the config file. Yay !

But, when the installation fails, it gave me the prompt "The following
applications should be closed before continuing the install:
WixWindowsService2012". And, it asks me to select 
-Automatically close applications and attempt to restart them after setup is
complete.
-Do not close applications. (A Reboot may be required).

When I select "Automatically close applications and attempt to restart them
after setup is complete.", it stop the running Windows Service, but it never
prompt me to cancel the installation. 
So it never rolled back to the previous version of installation.
The only way to rollback the installation is when I click Cancel on the
above prompt.

Is that by design ?





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