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The update is not applying for me, had the same issue when you released version 0.10, itchio desktop app says i have updated the game but when i launch it and select the "about" option in the menu, game reports not being updated (in this case, itchio app says game is v 0.11, the about tab in-game says 0.10.

The only work-around i found to fix this is to uninstall and reinstall from scratch, but it make me lose my saved game.

Any possible fix to this?

Uhm, I don't really have an answer for this. With Ren'py games, I always completely delete the previous version, saving the "saves" folder, then copying that folder inside the game folder of the new version. Can't help you more than that, sorry. :(

Where are the save files located?

Inside the 'game' folder of the game.

So i tried checking the game folder and apparently when you push an update, itchio downloads it and creates a new game folder instead of updating the existing one (so in this case i had 2 copies of the game, one version 0.10 and one version 0.11). Itchio then recognizes the game as updated but when i click the launch button it instead starts up the non-update version. I assume it's because clicking the "play" button shows me a pop-up with 2 game.exe options, both with the same name and same KB size. Don't know if it could help you locate the issue, but i think it was worth pointing it out.

Uhm, we'll check it out, but doesn't seem like something we are able to change. Don't really know why does that happen. >_<