The problem is you're removing the client.wyc file from Release 2. This means you're telling wyUpdate to remove the client.wyc when Release 2 is installed. I guess we should make wyBuild smarter about detecting this behavior (right now it's letting you shoot yourself in the foot).
Here's a description of how wyBuild compares versions: https://wyday.com/wybuild/help/faq.php#how-it-works
Long story short: either don't add client.wyc to any of the releases, or make sure the latest release always has the client.wyc file.