How to update existing application on Azure Marketplace

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I have published a managed application on azure marketplace, Now I want to add new features to that application (ie : I have done few changes in the source code) so how can I do that, Do I have to publish another app and keep the existing one, Or there is some other provision from where I can update my app so that all the users will get the updated version automatically.

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Any updates to a Managed Application and its resources must be pushed out manually by the publisher by their mechanism of choice (Azure CLI, ARM templates, Azure Portal, Terraform, etc) via the access that the publisher has to the resource group created for the Managed Application.

There is no way to just push up the new ARM template and have that roll out to deployed instances. But you can re-publish the offer (if publishing via the Commercial Marketplace) with a new template if you want to make the new template available to be used by freshly-created instances, but that this will never affect instances of the Managed Application that already exist.

The rep agreed that the docs that state the following are misleading to how the process actually works:

You can make sure that all customers are using approved versions. Customers don't have to develop application-specific domain knowledge to manage these applications. Customers automatically acquire application updates without the need to worry about troubleshooting and diagnosing issues with the applications.

This "automatic" versioning process is one that the publisher is responsible for implementing on their own. There is actually no concept of versioning built in to Managed Applications.