In an Actor project, the AssemblyVersionAttribute value is used to update the ServiceManifest version, along with the code and config version. There is no such behavior for Service projects.
This updated version is also used to update the ServiceManifestRef 's ServiceManifestVersion reference in the ApplicationManifest. While the ApplicationManifest is modified on every build, it doesn't appear a manually set version within the Service project's ServiceManifest is updated in the ApplicationManifest either.
Is this planned or intended behavior for Service projects?
I'm running Visual Studio 2015 RC, the first preview of the Service Fabric SDK, and 4.0.95-preview1 of the NuGet packages.
Short answer: This behavior difference is temporary as we improve our tooling support for versioning and upgrade.
Slightly longer answer: Part of the original goal of the Service Fabric actor framework was to abstract away the details of manipulating the application and service manifests so that you can truly focus on your business logic. Hence, the SDK includes a tool (called FabActUtil) which is responsible for doing some of that manipulation on your behalf as a post-build step. There is currently no such tool for reliable services projects. We are considering options for reconciling this difference as part of adding upgrade support to Visual Studio. We need to strike a balance between keeping you in control of your versioning scheme and taking care of the chore of cascading your version changes throughout the application as required.