jon@purity:~/projects/bitcoin/bitcoin (upgradewallet-improvements)$ git diff dfec0a8 25909e6
diff --git a/src/wallet/wallet.cpp b/src/wallet/wallet.cpp
index 17631c58e7..10a7a07ee7 100644
--- a/src/wallet/wallet.cpp
+++ b/src/wallet/wallet.cpp
@@ -4127,15 +4127,15 @@ bool CWallet::UpgradeWallet(int& version, bilingual_str& error)
     }
 
     // Permanently upgrade to the version
-    const WalletFeature new_version{GetClosestWalletFeature(version)};
-    SetMinVersion(new_version);
-    version = new_version; // return actual updated version
+    SetMinVersion(GetClosestWalletFeature(version));
 
     for (auto spk_man : GetActiveScriptPubKeyMans()) {
         if (!spk_man->Upgrade(prev_version, version, error)) {
             return false;
         }
     }
+
+    version = GetVersion(); // return actual updated version
     return true;
 }
 
diff --git a/test/functional/wallet_upgradewallet.py b/test/functional/wallet_upgradewallet.py
index cec3dd2b6d..7cae913fa1 100755
--- a/test/functional/wallet_upgradewallet.py
+++ b/test/functional/wallet_upgradewallet.py
@@ -90,10 +90,10 @@ class UpgradeWalletTest(BitcoinTestFramework):
             v16_3_node.submitblock(b)
         assert_equal(v16_3_node.getblockcount(), to_height)
 
-    def test_upgradewallet(self, wallet, previous_version, requested_version, unchanged=False):
-        new_version = previous_version if unchanged else requested_version
+    def test_upgradewallet(self, wallet, previous_version, requested_version, expected_version=None, no_arg=False, unchanged=False):
+        new_version = previous_version if unchanged else expected_version if expected_version else requested_version
         assert_equal(wallet.getwalletinfo()["walletversion"], previous_version)
-        assert_equal(wallet.upgradewallet(requested_version),
+        assert_equal(wallet.upgradewallet() if no_arg else wallet.upgradewallet(requested_version),
             {
                 "wallet_name": "",
                 "previous_version": previous_version,
@@ -182,7 +182,7 @@ class UpgradeWalletTest(BitcoinTestFramework):
         copy_v16()
         wallet = node_master.get_wallet_rpc(self.default_wallet_name)
         self.log.info("Test upgradewallet without version arguments")
-        self.test_upgradewallet(wallet, previous_version=159900, requested_version=169900)
+        self.test_upgradewallet(wallet, previous_version=159900, requested_version=169900, no_arg=True)
         # wallet should still contain the same balance
         assert_equal(wallet.getbalance(), v16_3_balance)
 
@@ -342,7 +342,7 @@ class UpgradeWalletTest(BitcoinTestFramework):
         old_kvs = dump_bdb_kv(node_master_wallet)
         defaultkey = old_kvs[b'\x0adefaultkey']
         self.log.info("Upgrade the wallet. Should still have the same default key.")
-        self.test_upgradewallet(wallet, previous_version=139900, requested_version=169900)
+        self.test_upgradewallet(wallet, previous_version=139900, requested_version=159900, expected_version=169900)
         new_kvs = dump_bdb_kv(node_master_wallet)
         up_defaultkey = new_kvs[b'\x0adefaultkey']
         assert_equal(defaultkey, up_defaultkey)