When Designer generates version 2 of the process, the package (ProcessProjectName) containing the logical server folder (Default) and the subscription trigger (subscriptionTrigger) used for all versions of the process already exists, because these components were used in version 1.

Designer creates the ProcessName_2 folder for the second version of the process using the ProcessName_1 folder as a template. Designer creates a new folder for the first logical server for the new process version (Default) under the ProcessName_2 folder, and then copies all the transition triggers and generated flow services that version 1 of the process used, making adjustments for any changes that were made in version 2.

It follows the same procedure for creating the second logical server folder, LogicalServer2, and copies the transition trigger and generated flow services from version 1 of the process, again making adjustments for any changes that made in version 2.