diff --git a/src/NerdBank.GitVersioning/ReleaseManager.cs b/src/NerdBank.GitVersioning/ReleaseManager.cs
index c57b77320..28108947b 100644
--- a/src/NerdBank.GitVersioning/ReleaseManager.cs
+++ b/src/NerdBank.GitVersioning/ReleaseManager.cs
@@ -270,7 +270,9 @@ private void UpdateVersion(LibGit2Context context, SemanticVersion oldVersion, S
         Requires.NotNull(context, nameof(context));
 
         Signature signature = this.GetSignature(context.Repository);
-        VersionOptions versionOptions = context.VersionFile.GetVersion();
+
+        // Retrieve the version options carefully to avoid 'flattening' an inheriting version.json file.
+        VersionOptions versionOptions = context.VersionFile.GetVersion(VersionFileRequirements.NonMergedResult | VersionFileRequirements.VersionSpecified | VersionFileRequirements.AcceptInheritingFile, out VersionFileLocations locations);
 
         if (IsVersionDecrement(oldVersion, newVersion))
         {
@@ -288,7 +290,7 @@ private void UpdateVersion(LibGit2Context context, SemanticVersion oldVersion, S
             }
 
             versionOptions.Version = newVersion;
-            string filePath = context.VersionFile.SetVersion(context.AbsoluteProjectDirectory, versionOptions, includeSchemaProperty: true);
+            string filePath = context.VersionFile.SetVersion(locations.VersionSpecifyingVersionDirectory, versionOptions, includeSchemaProperty: true);
 
             global::LibGit2Sharp.Commands.Stage(context.Repository, filePath);
 
diff --git a/src/nbgv/Program.cs b/src/nbgv/Program.cs
index e342e1465..1115a3a38 100644
--- a/src/nbgv/Program.cs
+++ b/src/nbgv/Program.cs
@@ -912,7 +912,7 @@ private static Task<int> OnPrepareReleaseCommand(string project, string nextVers
             VersionOptions.ReleaseVersionIncrement? versionIncrementParsed = default;
             if (!string.IsNullOrEmpty(versionIncrement))
             {
-                if (!Enum.TryParse<VersionOptions.ReleaseVersionIncrement>(versionIncrement, true, out VersionOptions.ReleaseVersionIncrement parsed))
+                if (!Enum.TryParse(versionIncrement, true, out VersionOptions.ReleaseVersionIncrement parsed))
                 {
                     Console.Error.WriteLine($"\"{versionIncrement}\" is not a valid version increment");
                     return Task.FromResult((int)ExitCodes.InvalidVersionIncrement);