This may be a silly question - Should I uninstall the existing Survey123 Connect before installing the new version? I kind of expected something similar to Pro - updating will be done while preserving all exciting data and folder structures, but I got an error while trying to overwrite the existing Survey123 folder.
Yup, you have to uninstall Connect before installing the newer version.
When uninstalling, it will say this:
My surveys are stored elsewhere (which I believe is the default), so that's fine. You can double check where yours are saved by clicking on a survey's 3 dot menu in Connect and then choosing Show folder and seeing where that folder lives.