The problem is that even after you find the culprit in this case, and fix it (assuming you manage to get it fixed), it may crop up at any time again in the future. The reason for this is, as I understand it, that you are relying on the programmers to not be lazy in the way they parse filename/extensions. The vast majority of frameworks (eg, built in OS frameworks talking to the filesystem) will get this right, but there will be cases where the programmer takes a shortcut and quickly matches the first dot as the delimiter, because it is more work to match the file extension correctly. So, even if you get it fixed this time, you are only fixing it this time. It will come again.
It certainly isn't correct to call the system you describe "THE common file evolution standard". I would call it "THE most common file naming mistake". I was reluctant to give it up back in the day, but the peace of mind has been well worth it, and I've lost nothing. Actually, the system I use now is superior anyway because two-alpha-characters better convey the phase of the document (as in your system 1=pre-draft, whereas mine is DR).
Anyway, some food for thought if nothing else. Hope you get it fixed and all the best.
- Mark
Thanks Mark, appreciated
OK solved.
I reread Bobs post and what i mistook as file extension, i was attributing to file "type"
i clicked on file name extentions and noted .indd was missing

Of course i added .indd extension to the file and tah dah

As you were Support peeps - a simple fix, but still not sure why it happened. And only with v1.1
Meh, as long as this is all it takes to fix, i can live with it
thank you all - highly appreciated
sean