Turn ON multi-version option in the part settings -

Select Jupyter Notebook as the "Lab Type" in the part setting -

Make sure to select "Save" to save the part configuration.

Select "Configure Workspace". You can toggle between "Standard View" which shows the file system by selecting View=>standard or launch Jupyter server by selecting Jupyter=>Launch Jupyter Server. Jupyter server is launched in the "work directory". Work directory is where you create your notebook or upload from your desktop.

You should see "Version 0" in the workspace.

Upload a notebook or create one by starting Jupyter server. The notebook is created in the "work" directory. Release the notebook by selecting Jupyter => "Release Notebook". Select the notebook that you want to use for Version 0 -

If the release was successful, you should be able to see the notebook in the "startercode" directory by selecting View=>standard

Add the next version by selecting "Edit Version"

Select "Version 1" at the top to select the file system for Version 1. Note that work area is same across all versions. Upload or create notebook for Version 1. Release notebook for Version by selecting Jupyter=>Release Notebook(s) and then making sure that you only select notebooks that you need for Version 1.

Once again you should be able to confirm that the right notebook was released by going to View=>Standard and then seeing the file in startercode directory.

Select "Update". Normally you would be able to select "Student View" to test the behavior as a student. Unfortunately, Student View is currently not supported for parts with multiple versions. Login as a student to see that a version was randomly selected and the correct notebook presented.