It works, but it's always one off from what you have in the project options.
Whoever coded it felt that the increment should happen after the build, so when you check the version in the compiled program via the embedded resource, it's one less than what it shows in the project options.
Other than that issue it does auto increment just fine, but because of the weirdness I mentioned above I just increment it manually now so my apps show the same version as the project options.