Am I ok to upgrade directly from 3.6.6 to 4.2.2 or do I need to do an incremental?
You can upgrade directly, without any issues.
You are in for a ride. Do not do it without Git.
And backup.
Many many things have changes, and many many things might break (depending on the complexity of your app).
Most changes are in the Wappler UI, for the components there were also several updates but these are not that mayor and should normally not give more problems then a minor Wappler update. It is always good to backup your projects before updating.
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