I am curious what happens when an app is updated via the Play Store.
For example: - Do alarms get reset? - Do services keep running? - Is the app installed again ( ie all the code called? What happens if the app requires user input during install? Or is the code only called next time the user opens it?)
Google Play store tries to avoid updating an app while it is running, especially while it is running in the foreground. But it cannot always avoid this.
As for what happens, it is exactly the same as for any other method of doing a re-install or update. Google Play uses the same PackageInstaller APIs as everyone else on Android.
So you can test to see what happens using adb install -r
(SO question)