Let me take a stab at trying to clear things up. In reading this thread, I have been trying to understand whether there is a bug, or whether there is ambiguity about how the lifecycle works. Truth be told, I am still unsure! There appear to be several conflated issues that I would like to try to tease apart.
When an extension is moved to hosted test, all associated assets, including the source bundle, screenshots, the icon, description text, and other configuration are uploaded to Twitch. If you add screenshots, or edit information under settings these will not be updated until another transition is made from local test to hosted test. This required action is currently unclear, and is something that will be addressed.
In regards to the discussion around the release process, I am looking for more information (or possibly a screenshot!!!). After an Extension version has been approved, there is a call to action for the developer to promote it to released. Is what being said, that when the release button is pushed by a developer, the dev site is not updating (even after a page reload), but the Extension version appears in Extension manager for broadcasters on Twitch? Does the dev site status eventually update? What happens to the release button?