0x8004F016 - A managed solution cannot overwrite the LocalizedLabel component with Id=XXXXXXXX-XXXX-XXXX-XXXX-XXXXXXXXXXXX which has an unmanaged base instance. The most likely scenario for this error is that an unmanaged solution has installed a new unmanaged LocalizedLabel component on the target system, and now a managed solution from the same publisher is trying to install that same LocalizedLabel component as managed. This will cause an invalid layering of solutions on the target system and is not allowed.

We had a client who had a very old version of our CRM customizations managed solution. When we attempted to update we received the following error.

ErrorCode:
0x8004F016

ErrorText:

A managed solution cannot overwrite the LocalizedLabel component with Id=XXXXXXXX-XXXX-XXXX-XXXX-XXXXXXXXXXXX which has an unmanaged base instance.  The most likely scenario for this error is that an unmanaged solution has installed a new unmanaged LocalizedLabel component on the target system, and now a managed solution from the same publisher is trying to install that same LocalizedLabel component as managed.  This will cause an invalid layering of solutions on the target system and is not allowed.

Checking the internet the responses seemed to be based around deleting data from the SQL database. This is not recommended for two reasons. 1) Its not microsoft supported  2) It doesn't work for CRM Online.

The item that was failing was:

ItemType

Name

Localized Name

Form

Incident

Case

Investigating the forms related to Case I found that the name of forms had been changed i suspect by an unmanaged customization.  By changing the name back to the correct name I could then import my managed solution correctly.