Why does every time I download an APK and try to install it, it will say; "Do you want to install an update to the existing application? Your existing data will not be lost." How do I fix this?
The Play Store has recognized that an app is installed, probably 3rd app, and wants to install the official version from the Play Store.
I use Open Camera, which I downloaded from SourceForge. No cost. The current version is 1.51. Yet Play Store asked if I wanted to update an existing application. The version is the same. 1.51. Why does Play Store wish to update it? Because Play Store user and app tracking is fully enabled. The package from SourceForge is not.
And to define 3rd party… this can be something from apkpure, amazon appstore, samsung appstore, etc.
If rooted, you can freeze the app and restore disconnecting from Play Store—something similar to a different app ID. What is much easier and more effective is changing settings in the Play Store, not updating apps and not notifying users about changes. Granted, you will always be behind the ball regarding being current, but you can also read comments from other users to see if an update is valid or creates problems. Many of my apps come from various sources, including older versions of when an app ran great without issues (like Google's web view fiasco). I also support developers directly and make sure they get paid more than if they bought the app through the Play Store.
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