IMCE 1.2 doesnt seem to show as installed?

I also experienced this. I ended up completely deleting all the files and extracting a new download of 7.x-1.2 and that fixed it. But yes, Drush update could not seem to get it from 1.1 to 1.2.

Had the same problem using the Drupal update manager. #1 worked for me, thanks!

This is working fine and this issue just need to be closed.