Kiwi Upgrade

I downloaded the 9.5 upgrade for our Kiwi Syslog server.  We currently have have 9.4.1 installed.  My question is how does everyone typically handle an upgrade like this?

               1) Do you spin up another VM, install the new version, then migrate settings over to it?

               2) Do you run the upgrade on the current Syslog server and let it do its thing?

This is the first time I am upgrading Kiwi so any input your guys have from past experiences would be much appreciated.