[Package Issue]: Microsoft.WindowsTerminal Installer fails with exit code 0x80073d06

Please confirm these before moving forward

• I have searched for my issue and not found a work-in-progress/duplicate/resolved issue.
• I have not been informed if the issue is resolved in a preview version of the winget client.

Category of the issue

Installation issue.

Brief description of your issue

Upgrading WindowsTerminal 1.18.2822.0 to 1.18.3181.0 with winget upgrade -h --all fails with the error:

Installer failed with exit code: 0x80073d06 : The package could not be installed because a higher version of this package is already installed.
A higher version of this application is already installed.

Steps to reproduce

Run on PowerShell as Administrator:

winget upgrade -h --all

Actual behavior

The upgrade fails with the following error:

Found Windows Terminal [Microsoft.WindowsTerminal] Version 1.18.3181.0
This application is licensed to you by its owner.
Microsoft is not responsible for, nor does it grant any licenses to, third-party packages.
Installing dependencies:
(1/1) Found Microsoft.UI.Xaml [Microsoft.UI.Xaml.2.8] Version 8.2306.22001.0
This application is licensed to you by its owner.
Microsoft is not responsible for, nor does it grant any licenses to, third-party packages.
Successfully verified installer hash
Starting package install...
  ████████████████████████████▌   95%
Installer failed with exit code: 0x80073d06 : The package could not be installed because a higher version of this package is already installed.
A higher version of this application is already installed.

Expected behavior

The upgrade succeeds without errors.

Environment

Windows Package Manager v1.6.3133
Copyright (c) Microsoft Corporation. All rights reserved.

Windows: Windows.Desktop v10.0.22631.2715
System Architecture: X64
Package: Microsoft.DesktopAppInstaller v1.21.3133.0

Screenshots and Logs

WinGet-2023-11-24-10-05-23.195.log

Start by reproducing the upgrade with winget upgrade -h --all in an elevated PowerShell session and review the attached WinGet log. Investigate why the Microsoft.WindowsTerminal upgrade reports 0x80073d06 despite finding version 1.18.3181.0; done means the upgrade completes without the higher-version error.