We would like to convey some information about a known upgrade issue with the February 29th Team Foundation Server 2012 Beta release.
Recently, one of our customers reported hitting a block when trying to upgrade TFS 2012 Beta to the recent TFS Update 1 release.
TF255438: The configuration database that you specified cannot be upgraded. The following issue prevents upgrading the database: TF400965: The database was created using a non-Go Live version of Team Foundation Server and cannot be upgraded.
We have confirmed that there is a hard block preventing upgrade in this scenario, when it should actually be enabled. Upgrade from TFS 2012 Beta will be enabled again for Update 2, which will be released in a few months. Until then, the workaround for this issue is to do a two-step upgrade by first upgrading to TFS 2012 RTM, and from there upgrading to TFS 2012 Update 1. Although only the most recent version of TFS 2012 is discoverable online at any point in time, the RTM release is still available. The links to the RTM release are below for anyone who needs to upgrade Beta right away.
TFS 2012 RTM