I suggest you look into what pg_upgrade actually does because the "code handling upgrading" does not exist other than as pg_upgrade. And writing it would be a ton of work and would likely halt a lot of innovation in PostgreSQL and make it no longer a competitive database unless someone does a major re-architecting of PostgreSQL which likely would break all extensions.
The issue causing it is how PostgreSQL has implemented the system catalog.
The issue causing it is how PostgreSQL has implemented the system catalog.