To update the Application Server to a later version you basically need to uninstall the the Application Server first and then run the Setup for the new Version of the Application Server.

The Application Server Setup Program will automatically detect if a previous (older) version of the Application Server is already installed. If so, the Setup Program will inform you that you have to uninstall the currently installed version first.

Uninstalling the previous version of the Application Server will not delete the files in the binary directory, cache directory, log directory, modules directory, optional logs directory, or temporary directory. The instance configuration file in the application directory will also not be deleted. When installing the new version (in the same application directory) the Setup Program will find the instance configuration file and will use the settings from this file as default values for all steps in the Setup Assistant.