Application component not copy where the .inf indicates

I have a problem where my .bpl is not copied where the INF indicate the component shall go.

Here is my file update info.

[file14]
url=\\strykercorp.com\med\Common\Stryker Debugger Tool\Update/FuseAddOn.bpl_NEW
newversion=1.2.0.0
localversion=.\ReleasedAddons\Fuse\FuseAddOn.bpl
targetdir={app}\ReleasedAddons\Fuse
descr=Fuse AddOn
filesize=3291822

And here is the application section of the INF

[application]
appupdate=1
appname=SykDbgr.exe
silentrestart=1
appcomps=SykDbgr.exe_NEW IFXPackage.CAB vcl290.CAB AltrixAddOn.CAB FuseAddOn.bpl_NEW PaceErrorsAddOn.bpl_NEW PaceRIBAddOn.bpl_NEW HydrogenAddOn.bpl_NEW

So, the issue is the FuseAddOn.bpl is detected properly as needed an update but the installer copies it in the root folder where the SykDbgr.exe is installed and not in {app}\ReleasedAddons\Fuse Folder.

So, the application does not find the updated bpl.

How can I specify the destination folder for a component of the application?

It needs to be a component as it is loaded in memory during the update.

This looks correct, so not sure why it is not doing this.
Can you enable logging on TWebUpdate and send the .log file for inspection?

WUPDATE_EXTRACT.LOG (14.9 KB)

Here is the extract of the log for this session where the update was detected but copied in the wrong destination folder.

The issue is that the DLL is an application component and the application components are assumed to be in the application folder (then it ignores the targetdir).
If you need this DLL to be deployed in a subfolder, a possible solution is to put this DLL in a CAB or ZIP file where this relative subfolder is stored in the CAB or ZIP file, i.e.
ReleasedAddons\Fuse\FuseAddOn.bpl