Yes, you're right, the Upgrade Wizard in the pre-Q1 2010 Visual Studio Extensions does not list the downloaded NET2.0 assemblies. You will notice that if the project targets .NET Framework 3.5, the list will be populated with the newly downloaded version though.
Let me add some more details:
This comes because in Q1 2010 we introduced a new directory structure for the assembly distribution
, where the .NET 2.0 specific assemblies are now located in the BIN20 folder. The previous VSExtensions versions do not "know" of this change, hence they don't list that folder.
Please, excuse the inconvenience.
the Telerik team
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