Upgrading TFS2012.2 to TFS2012.3

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I'm trying to upgrade from TFS2012.2 to TFS2012.3.

I downloaded the ISO, ran the tfs_server.exe, and after a few reboots, I'm prompted with the Upgrade Wizard.

On step two(2) "Specify a Team Foundation Server configuration database to upgrade", I need to specify a SQL Server Instance. But when I click "List Available Databases", no database shows up in the list.

I tried different combinations of SQL Server Instance (servername, servername.domain, ., (local)) but all of them returns an empty list. Note SQL is not running named instance.

SQL is up and running and I can see the TFS databases (Tfs_Configuration, Tfs_DefaultCollection, Tfs_Warehouse).

Everything is running on this one machine.

Digging deeper, in the Event Logs (Team Foundation Server Build Service Events), I found this:

Exception Message: TF400686: The requested schema property TFS_SCHEMA_VERSION did not match the expected value. The server requires the Microsoft Team Foundation Server 2012 M49 schema but the database currently implements Microsoft Team Foundation Server 2012 M44 (QU2). (type DatabaseSchemaException)

I'm not sure if this is a clue or not.

Last point: If I go to the TFS Admin Console, when I click on Application Tier, the screen shows a "This features has been installed but needs to be configured. Click on Configure Installed Features to begin initial configuration."

Did I miss a step?

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