Based on the comments
- Auto scaling groups can use launch configuration or launch template.Launch template is a newer version,recommended by aws, because launch template supports versioning, so whenever you want to update your conifguration just update the version number of launch template by going to
actions menu for launch template and modify version
.docs of launch template.
- once you updated your launch template, fo to your autoscaling group edit it and under launch template choose the update version of template.
- in case of launch configuration if you want to update application you need to recreate launch configuration every single time.
whenever my instance is terminated, the new instance is launched with Version1 of my application
Yes whenever a new instance is launched it is using the old configuration of template. so modify your launch template version.
my suggestions would be :- when you update your application create a ami of update application on that instance. and then update that ami in the new version of your template so your instance will be launched according to new ami, thus updated application