Vitek: Eh, the new update installed itself into "DefendersQuest" directory instead into mine "Defender's Quest" one.
Also it was weirdly done, because I think it asked me for Defender's Quest directory but when I selected it, it installed the before mentioned DefendersQuest directory inside the game directory.
Okay, that did it. the first issue was my own error for not double-checking the path.
After choosing the correct path, I did observe the installer create the extra DefendersQuest folder, and just moved those contents into my main game folder. All is well, although that is an issue that still needs fixing.
the download page just needs the minor tweak to reflect the actual windows installer version, and this thread will have served its purpose.