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I am trying understand asset versioning and I have understand from the AEM docs that whenever we upload metadata, new version will be creates as per (https://experienceleague.adobe.com/docs/experience-manager-learn/assets/collaboration/versions.html?...
But when I verify this in latest cloud sdk I don't see this working, and version is only created by selecting asset click create version button.
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The documentation you are referring looks like it is applicable for Classic AEM versions as opposed to Cloud service docs/tutorials.
Can you try the behavior directly in Cloud service Development instance instead of local SDK.