Should I upgrade to 2020.2.2f1 LTS from 2020.2.1f1 LTS?

As far as I understand Unity doesn't support upgrading and every time I want a new version I should download and install it from scratch including all modules. Had a hard time installing 2020.2.1f1 and fight with Unity Hub for 3 days before was able to download new Unity successfully. So now I'm debating if I should go through all this nightmare again? Or should I just stick with 2020.2.1f1 for now? Would be really grateful for suggestions.

 

It is up to you, if you have any bugs you can't fix otherwise or you need anything from the newer versions, than you should update. But don't update just for the sake of the update.
And if you do, consider to update to the 2020.3 LTS version. That gets bugfixes for two years but won't get any new features.

And use Version Control and backup before you do anything.

 

We have alot of packages etc. Normally it just works when going up a minor version like that. Though I would go to 2020.3.2 LTS

edit: I say normally because some times you do need to wipe library folder

 

Always make a backup before upgrading Unity versions. Unity is very complex software, so a new version (even a minor patch version change) can come with new bugs which escaped QA.

A general strategy for Unity version updates is to stay pretty current early in the game's development, but at some point you get off the train when everything is working great. Ideally you do that on some version of an LTS release. At that point you only upgrade Unity versions if you need something specifically from the new version (bug fix, or must have new feature), and only after careful consideration. This is referred to as "version lock". It is also why the Unity Hub exists, since it is completely normal to have several Unity Editor versions installed at the same time, all for different projects.

You should do a full QA pass on your entire game after upgrading Unity versions. I've seen even patch release changes result in new physics bugs, change the order of Start or Update getting called between objects which exposes bad code which just happened to work before but no longer does, bring new UI issues, and a pretty wide variety of problems.