I would suggest adding the actual class name to MIDlet-1.
Hopefully the new MIDlet still uses the same class.
The MIDlet installer is not really supposed to rely on MIDlet-Name and MIDlet-Vendor to uniquely identify an application.
I seem to remember something about the Update-Url line being about how to notify a remote server that the MIDlet HAS BEEN upgraded, not a location where to find the upgrade.
EDIT:
Right. My bad. I thought you were using a standard JAD property but the one I was thinking about was "MIDlet-Update-Notify", which, funnily enough, doesn't exist. There's only "MIDlet-Install-Notify" and "MIDlet-Delete-Notify". So, keep your "Update-Url" property.
The "MIDlet-1" line is supposed to contain 3 elements. The first one is the MIDlet name, the second is the optional icon, the third is the full MIDlet class package and name. It is hardly reasonable to expect the installer to rely solely on the MIDlet name to decide whether a new jar file is a new install or an upgrade.
The third element isn't in the JAD information you posted.