Winget lists update, but then denies there is one

Relevant area(s)

WinGet CLI

Relevant command(s)

winget upgrade

Brief description of your issue

winget update shows that there is a new package available, but then denies there is such when actually trying to update that package - in this case PowerShell.

Steps to reproduce

PowerShell 7.5.4

   A new PowerShell stable release is available: v7.6.0
   Upgrade now, or check out the release page at:
     https://aka.ms/PowerShell-Release?tag=v7.6.0

PS C:\Users\username> winget update
Name                   Id                   Version Available Source
--------------------------------------------------------------------
PowerShell 7.5.4.0-x64 Microsoft.PowerShell 7.5.4.0 7.6.0.0   winget
1 upgrades available.
1 package(s) have version numbers that cannot be determined. Use --include-unknown to see all results.

PS C:\Users\username> winget update --id Microsoft.PowerShell --source winget --include-unknown
No installed package found matching input criteria.

Expected behavior

If winget detects that there is a package that has a newer version then winget should be consistent with itself and be able to update the package to that version.
So winget should either be able to update to the newer package version, or should not say that there is a newer package version available.

Actual behavior

As above.

Environment

Windows Package Manager (Preview) v1.29.30-preview
Copyright (c) Microsoft Corporation. All rights reserved.

Windows: Windows.Desktop v10.0.26200.8037
System Architecture: X64
Package: Microsoft.DesktopAppInstaller v1.29.30.0

Winget Directories
-----------------------------------------------------------------------------------------------------------------------
Logs                               %LOCALAPPDATA%\Packages\Microsoft.DesktopAppInstaller_8wekyb3d8bbwe\LocalState\Diag…
User Settings                      %LOCALAPPDATA%\Packages\Microsoft.DesktopAppInstaller_8wekyb3d8bbwe\LocalState\sett…
Portable Links Directory (User)    %LOCALAPPDATA%\Microsoft\WinGet\Links
Portable Links Directory (Machine) C:\Program Files\WinGet\Links
Portable Package Root (User)       %LOCALAPPDATA%\Microsoft\WinGet\Packages
Portable Package Root              C:\Program Files\WinGet\Packages
Portable Package Root (x86)        C:\Program Files (x86)\WinGet\Packages
Installer Downloads                %USERPROFILE%\Downloads
Configuration Modules              %LOCALAPPDATA%\Microsoft\WinGet\Configuration\Modules

Links
---------------------------------------------------------------------------
Privacy Statement   https://aka.ms/winget-privacy
License Agreement   https://aka.ms/winget-license
Third Party Notices https://aka.ms/winget-3rdPartyNotice
Homepage            https://aka.ms/winget
Windows Store Terms https://www.microsoft.com/en-us/storedocs/terms-of-sale

Admin Setting                             State
--------------------------------------------------
LocalManifestFiles                        Disabled
BypassCertificatePinningForMicrosoftStore Disabled
InstallerHashOverride                     Disabled
LocalArchiveMalwareScanOverride           Disabled
ProxyCommandLineOptions                   Disabled
DefaultProxy                              Disabled

Start by reproducing the behavior with winget update and winget update --id Microsoft.PowerShell --source winget --include-unknown on the reported WinGet version. Trace the CLI paths that compare available and installed package versions, then verify completion when detection and installation agree for PowerShell.