How do you perform upgrade? Can you send "SbClientLog.txt" file?
Is SDMCFG.INI a part of your existing 5.1.7 client file set? Or any other file set that you remove? It should not be.
Why do you think that client directory should change? You are not pushing new installation set, do you?
Unfortunatly, I can't send the log. I migrated the client by changing the client files in the machines file properties from 517 to 524.--> Then force sync. Sdmcfg.ini is not apart of the client file set. It's not located in any of the file groups.
Why you can't send the log? Obfuscate custom names if you are concerned.
Was SDMCFG.INI mentioned in that log?
if it's not part of any client file set (which it should not be), then it won't be touched.
Is it mentioned in sbfiles41.lst by any chance?
The directory does not change because you are not installing the product - the install path gets set when you create an install set.
You are updating files, so they are all set to go into [appdir] wherever that may be.
This is by design - it should update the existing install, wherever you told it to be - remember the path it installed in is just the suggested one - when you built the install set you can set the path wherever you like.