The reason why 1.2.0 direct upgrades seem to fail from 1.x.x to 1.2.0 is because 1.2.0 actually fixed some installer issues with the database things.
Even in 0.32 the upgrade path still required one to edit the config file if you set a mysql password. Add to that, the fact you had two config files to edit. You had /opt/fog/service/etc/config.php and /var/www/fog/commons/config.php
In 1.1.2 (i think) i moved the config.php to it’s own class file located in /var/www/fog/lib/fog/Config.class.php
In 1.1.2 however, the installer was still having issues with passworded mysql databases. The FOG Team tried, during our move over from 1.0.0 rom 0.32, fixing a method to allow the password to be written into the now singular config file. This password was more related to the snmysqlpass field which is, in storage nodes, the database password for the fogstorage user. As the password didn’t seem to work right for the ftp user or the db user, we tried to use this field to set and hold the information for the ftp as this is more often the problem in 0.32. Then, finally I was able to fix the problem properly. The only problem I couldn’t fix were previously configured .fogsettings files. So, the fix, before you upgrade, is to edit the snmysqlpass with either blank or your mysql password. Run your installfog.sh file and all should work properly. And the upside is you won’t have to do this every time. If you already upgraded, edit the /var/www/fog/lib/fog/Config.class.php and enter either your blank or mysql password as needed. Edit the .fogsettings information as well.
While editing the .fogsettings file will not fix issues automatically, it will help you in the future when you need to update/upgrade fog again.