The error is essentially the same, but with the name of the .exe instead of the batch file name:
'Failed to execute the file "C:\Users\fictitioususer\wc\9\temp\updatetest.exe": No such interface supported'
The .exe is a valid executable. It is a console app that simply takes any command line arguments passed to it, and writes them to a file. The command line args passed to the app from wyUpdate are %basedir% %versionfrom% %versionto%. It does not output anything to the console. The app runs fine from the command line. If you want, I can do another test where the .exe does nothing at all. I don't think that will make a difference, however.
Things I have considered:
(1) Security issues, e.g. maybe the OS will not run an exe or bat file if it doesn't know where it came from. But if that were the case, I would expect to have problems running wyUpdate manually as well.
(2) Permission issues. When I run wyUpdate manually I am logged in as a different user than the service runs under when it tries to update itself. That would suggest some sort of permissions error. However, the service runs under an account that is an admin on the machine where it runs, so that seems unlikely.
(3) Console app attempting to interact with the desktop when running as a service. The service runs under a specific user account (i.e., not local System). When running a Windows service under the Local System account, there is an option on the service Log In dialog to "allow service to interact with desktop". This option is not available when running under a specific user account. From that I am assuming that Windows would consider it an error if the app tried to interact with the console. As I said, the app does NOT write to the console. But I am not sure what the OS does when it starts the app, such as attempt to create a console window. Perhaps that causes an error from the get-go. I can run a test tomorrow by running the service under the Local System account, with the "interact with desktop" option enabled, and see if the updater fails under those conditions as well.