Windows service not getting installed on major upgrade-WIX?

One possible explanation is that you changed the GUID of the component. As a result, (the different versions of) the same resources are being managed by different components.

If the service EXE has the same version in both packages, this happens because of the file versioning rules. Here is an article with more details: http://setupanddeployment.com/windows-installer-bugs/missing-files-upgrade.

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