Uploading a new file version is a matter of uploading a file with the same name as an existing file in a given folder. ArDrive will automatically create a second version of that file, using the fieId as the unique ID used to access the entire version history of the file.
There are no version limits, and each new version contains the full data of that file.
Learn more about the Arweave File System.
Note: ArDrive exposes version history in the Info panel of the file.