An approach to upgrade a deployed 'App for SharePoint' is to open the site that contains the AppCatalog (either tenant, or site collection with own app catalog) in a browser, go to 'Site Contents', and double click the App. In the 'About' dialog it will then present the option to upgrade. When the site is in Modern List experience, this approach is hampered: also the 'Site Contents' view is then within Modern View; and the available options there for any App are limited to 'Monitor' and 'Remove'. Microsoft is aware of the issue, and for now advises to apply a workaround: in the Modern 'Site Contents' view, click in the lower-left corner on 'Return to classic SharePoint'. This results that on the fly the 'Site Contents' view is rendered in classic mode, and the approach to upgrade App are available for usage. However, it turns out this workaround is only available for Modern Team sites, but not for Modern Communication Sites. Direct cause is that Communication Sites by Microsoft Design do not have the 'Left Navigation' (see Modern SharePoint Sites navigation options). And by Microsoft Design flaw this lack of left navigation is propagated into application and listview pages, including 'Site Contents' (Communication Site - Left Navigation Missing in Lists / Libraries). This leaves as only workaround for Communication Site to support upgrade of (SPFx) Apps interactive through the SharePoint UI, is “Opt out of the Modern list and library experience” for that site; at least for the moment when you need to upgrade any of the (SPFx) Apps in the (site) app catalog.
Note that the non-UI approach of upgrade via PowerShell (Update-SPAppInstance)is not hampered by the Modern List Experience.
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