After creating a package in a source environment and deploying to another target environment, I can see that the workflow version has been incremented in the management console for the target environment. That version is also set as the default version.
However, if I go to the designer in the target environment the workflow version is set to the previous version. If I delete that workflow in the designer (which is terrifying to me), it will then show the correct latest version from the recent deployment.
Is this correct? It seems very confusing. I would expect the designer to pick up the most recently deployed version. If I accidentally modify that older workflow and then deploy it, I think I get the older version.