When working with CRM Package Deployer, it always does an "Upgrade" process while importing a new solution. Please check out this post to find out more about the different solution update processes:
CRM Package Deployer fails with the "DeleteHoldingSolution Timeout" message, if the deletion of the holding solution takes more than 2 minutes. Good news are, there is a way to fix this problem by forcing CRM Package Deployer to do the import in an asynchronous manner. It's documented on the PowerShellGallery page:
In the Importconfig.xml file: Add requiredimportmode as an option to force an async or sync import behavior for a given solution.
<?xml version="1.0" encoding="UTF-8"?> <configdatastorage xmlns:xsd="https://www.w3.org/2001/XMLSchema" xmlns:xsi="https://www.w3.org/2001/XMLSchema-instance" installsampledata="false" waitforsampledatatoinstall="false" agentdesktopzipfile="" agentdesktopexename="" crmmigdataimportfile=""> <solutions> <configsolutionfile solutionpackagefilename="SampleSolutionOne_1_0_managed.zip" requiredimportmode="async" /> </solutions> </configdatastorage>