Since the latest release, every time I open a project, it tells me I need to update the project and create a backup. I do. However, when I attempt to open the backup I still get the popup that tells me I need to update the project. I have now updated and backed up the backup three times. Is this a bug, or is it just the way Scrivener is supposed to be now?
The point of the backup is to have a copy of the project from before the update, just in case you need it for any reason. So yes it will be in the in old format (and is thus useful with troubleshooting, if you had to downgrade to 1.8.6 for whatever reason, or found the update didn’t work properly). If you try to open that in the new version, it will need to update it because it is still a project in the old format, hence backups of backups of backups.
Just set it aside until you’ve verified the actual updated copy of the project is fine.