Resolution:
There is a known issue in GridServer 3.2.0 when upgrading from a 3.1.x installation configured to use an alternate base directory that will prevent the installation process from recognizing the previous installation directory as being valid.

This issue has been fixed for Service Pack 1 (GridServer 3.2.1), but you can also use the following as a workaround: Before beginning the upgrade procedure, copy the file WEB-INF/config/module.properties from the livecluster/ directory of your 3.1.x installation to the WEB-INF/config directory of your alternate base directory. You can then proceed with the upgrade process as specified in the GridServer Installation Guide.