Hello again @shiz !
If the XML you import is truly identical to the vendor’s base version for your current release, the upgrade behavior is typically clean. However, if ServiceNow modifies that same rule in the new release, you may be prompted to review or merge the change because the platform sees that record as having been touched locally.

Also, the suggestion about “Replace on upgrade” is valid and a very good idea: Setting Replace on upgrade = true for that customized Business rule causes the platform to overwrite your local/customized version with the ServiceNow-delivered version during the next upgrade or patch, so it’s a good option if your intent is “always take the vendor version going forward” (just be aware it will discard any local changes to that item).

You can read more about this approach in the official ServiceNow docs here: https://www.servicenow.com/docs/r/application-development/system-update-sets/t_OverwriteCustomizsDur...

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