I currently work on localhost and XAMPP. Yesterday I received a notification that the Neighborhood 3.2.4 update was available so I went ahead to download from the WordPress update page. It failed saying it could not copy the files. Not only that but it actually deleted the original theme files! Thankfully I work on a child theme so I downloaded the theme from ThemeForest to recover the files and update manually. I realised that the version currently on ThemeForest is 3.2.3 even though the changelog mentions infomation about 3.2.4.
Please, this is serious stuff is it was to happen on a live site!