I am glad that you were able to resolve this issue.
As for upgrading the AppBuilder Extension for Visual Studio (this applies for any other VS extension as well) - after the upgrade completes you must restart all Visual Studio instances so that the changes can take effect. Otherwise you will continue to work with the older version.
In your case I am assuming that Visual Studio was not able to successfully update the extension thus causing this behavior.
If you have any more questions or remarks, please feel free to contact us again!