This seemed to have happened with the recent SDK update 2.x (developer key issue?), although it might also be an GCM bug since that's where it shows up (cross post with https://forums.garmin.com/showthread.php?360373-quot-Update-quot-then-after-update-quot-Update!-quot).
In GCM i go to check one of my installed CIQ apps (watch face, data field, whatever) and see an update is available. I update and all goes well. I return to some random earlier screen, then back to the app i just updated. GCM tells me it still needs to be updated!
Note the app does actually update. It's just that GCM doesn't seem to realise this.
If i uninstall the app then reinstall it the update notification fully goes away. However outside of this, even after updating an app the blue update button always stays.
Do others find this with their apps?