What you’re running into is because of upgrading and the layered system. For example there are two default.jpg with the same name and one is in your save file and the other is in your new puppy.sfs. The one in the qrkysave file overrules the one in the puppy.sfs.Your lucky then,mine still says 1.2
If you delete the one in /usr/share/backgrounds/default.jpg and then delete the .wh.default.jpg (whiteout files are hidden, so you need to hit the eye to see) file in /initrd/pup_rw/usr/share/backgrounds then the new one will be installed on a reboot
duke