Patching with Wix for major upgrades - wix

Question

I am trying to support patches with Wix and was looking for answer like on this SO post
As suggested I used the "Using Purely WiX" code to do some testing and created 3 versions 1.0, 1.1 and 1.2
I can apply each of the MSI correctly to upgrade without errors and in ARP the version gets incremented.
I can patch from 1.0 or 1.1 to 1.2 but in ARP the version is not updated. As well after patching to 1.2 and running the 1.1 MSI installer, I then don't get the warning about downgrading.
Where am I going wrong here.
Here's the source:
<?xml version='1.0' encoding='windows-1252'?>
<Wix xmlns='http://schemas.microsoft.com/wix/2006/wi'>
<Product Id='*' Name='Foobar $(var.Version)' UpgradeCode='PUT-GUID-HERE'
Language='1033' Codepage='1252' Version='$(var.Version).0.0' Manufacturer='Acme Ltd.'>
<Package Id='*' Keywords='Installer' Description="Acme's Foobar $(var.Version) Installer"
Comments='Foobar is a registered trademark of Acme Ltd.' Manufacturer='Acme Ltd.'
InstallerVersion='100' Languages='1033' Compressed='yes' SummaryCodepage='1252' />
<MajorUpgrade DowngradeErrorMessage='A newer version is already installed.' />
<MediaTemplate EmbedCab='yes' />
<Directory Id='TARGETDIR' Name='SourceDir'>
<Directory Id='ProgramFilesFolder' Name='PFiles'>
<Directory Id='Acme' Name='Acme'>
<Directory Id='INSTALLDIR' Name='Foobar'>
<Component Id='MainExecutable' Guid='*'>
<File Id='SampleTXT' Name='Sample.txt' DiskId='1' Source='ver$(var.Version)\Sample.txt' KeyPath='yes' />
</Component>
</Directory>
</Directory>
</Directory>
</Directory>
<Feature Id='Complete' Level='1'>
<ComponentRef Id='MainExecutable' />
</Feature>
</Product>
</Wix>
<?xml version='1.0' encoding='windows-1252'?>
<Wix xmlns='http://schemas.microsoft.com/wix/2006/wi'>
<Patch AllowRemoval="yes" Manufacturer="Acme Ltd." MoreInfoURL="www.acmefoobar.com"
DisplayName="Foobar 1.1.0 Patch" Description="Small Update Patch" Classification="Update">
<Media Id='5000' Cabinet='Sample.cab'>
<PatchBaseline Id='Sample'/>
</Media>
<PatchFamily Id='SamplePatchFamily' Version='1.1.0.0' Supersede='yes'>
<ComponentRef Id='MainExecutable'/>
</PatchFamily>
</Patch>
</Wix>
and built with:
"%WIX_COMP_CMD%" -nologo -dVersion=1.0 Product.wxs
"%WIX_LINK_CMD%" -nologo Product.wixobj -out ver1.0\Product.msi
"%WIX_COMP_CMD%" -nologo -dVersion=1.1 Product.wxs
"%WIX_LINK_CMD%" -nologo Product.wixobj -out ver1.1\Product.msi
"%WIX_COMP_CMD%" -nologo -dVersion=1.2 Product.wxs
"%WIX_LINK_CMD%" -nologo Product.wixobj -out ver1.2\Product.msi
"%WIX_TORCH_CMD%" -nologo -p -xi ver1.0\Product.wixpdb ver1.2\Product.wixpdb -out Patch_0_2.wixmst
"%WIX_TORCH_CMD%" -nologo -p -xi ver1.1\Product.wixpdb ver1.2\Product.wixpdb -out Patch_1_2.wixmst
"%WIX_COMP_CMD%" -nologo Patch.wxs
"%WIX_LINK_CMD%" -nologo Patch.wixobj
"%WIX_PYRO_CMD%" -nologo Patch.wixmsp -out Patch.msp -t Sample Patch_0_2.wixmst -t Sample Patch_1_2.wixmst