diff --git a/bench/app.py b/bench/app.py
index b2cddf75..4f74fc32 100755
--- a/bench/app.py
+++ b/bench/app.py
@@ -343,7 +343,7 @@ def get_app(
 
 	if resolve_deps:
 		resolution = make_resolution_plan(app, bench)
-		click.secho("Apps to be installed:", fg="yellow")
+		click.secho("Following apps will be installed", fg="yellow")
 		for idx, app in enumerate(reversed(resolution.values()), start=1):
 			print(f"{idx}. {app.name}")
 
@@ -379,6 +379,7 @@ def get_app(
 
 	if resolve_deps:
 		install_resolved_deps(
+			bench,
 			resolution,
 			bench_path=bench_path,
 			skip_assets=skip_assets,
@@ -412,6 +413,7 @@ def get_app(
 		app.install(verbose=verbose, skip_assets=skip_assets)
 
 def install_resolved_deps(
+	bench,
 	resolution,
 	bench_path=".",
 	skip_assets=False,
@@ -424,16 +426,19 @@ def install_resolved_deps(
 		del resolution["frappe"]
 
 	for repo_name, app in reversed(resolution.items()):
-		existing_dir, cloned_path = check_existing_dir(bench_path, repo_name)
+		existing_dir, _ = check_existing_dir(bench_path, repo_name)
 		if existing_dir:
-			if click.confirm(
-				f"A directory for the application '{repo_name}' already exists. "
-				"Do you want to continue and overwrite it?"
-			):
-				click.secho(f"Removing {repo_name}", fg="yellow")
-				shutil.rmtree(cloned_path)
+			if bench.apps.states[repo_name]["resolution"] != app.tag:
+				click.secho(
+					f"Incompatible version of {repo_name} is already installed",
+					fg="yellow",
+				)
 				app.install_resolved_apps(skip_assets=skip_assets, verbose=verbose)
-
+			else:
+				click.secho(
+					f"Compatible version of {repo_name} is already installed",
+					fg="yellow",
+				)
 			continue
 		app.install_resolved_apps(skip_assets=skip_assets, verbose=verbose)
 
diff --git a/bench/bench.py b/bench/bench.py
index 21c40c3d..93a83956 100644
--- a/bench/bench.py
+++ b/bench/bench.py
@@ -160,18 +160,16 @@ class BenchApps(MutableSequence):
 		self.bench = bench
 		self.states_path = os.path.join(self.bench.name, "sites", "apps_states.json")
 		self.initialize_apps()
+		self.set_states()
 
 	def set_states(self):
 		try:
 			with open(self.states_path, "r") as f:
 				self.states = json.loads(f.read() or "{}")
 		except FileNotFoundError:
-			with open(self.states_path, "w+") as f:
-				self.states = json.loads(f.read() or "{}")
+			self.states = {}
 
 	def update_apps_states(self, app_name: str = None, resolution: str = None):
-		self.initialize_apps()
-		self.set_states()
 		apps_to_remove = []
 		for app in self.states:
 			if app not in self.apps:
@@ -281,6 +279,9 @@ class BenchSetup(Base):
 		- install frappe python dependencies
 		"""
 		import bench.cli
+		import click
+
+		click.secho("Setting Up Environment", fg="yellow")
 
 		frappe = os.path.join(self.bench.name, "apps", "frappe")
 		virtualenv = get_venv_path()