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Huh. I had a normal coop, and I was trying to upgrade to the Spacious Coop. Do we have to upgrade in order?

At the moment yes you have to go to adequate and then spacious, it’s been brought up that allowing for going from tier 1 to tier 3 would be nice so I’ve got it on my list of things to do. In the version you are on I’d imagine the spacious one is a better bet as well since its cheap due to a bug at the moment.

IMHO it doesn't make sense to skip tier 2... its a progression, but it is your game :)

did you do the quest to upgrade?

I upgraded, but I had to upgrade to the Adequate Coop first and then the Spacious Coop. I've upgraded my barn completely now too.