LCS upgrade of deployable package for v10.0.35 is failing on Dev environment switched to CommerceSDK

[RethaLam]

One of our cloud-hosted environments was now switched to CommerceSDK. It still has v10.0.33 on it which was there prior to the switch to CommerceSDK.
The cloud-hosted development environments come with RetailServer and RetailCloudPOS.
I first tried to upgrade the environment tov10.0.35 in LCS with Apply Updates but it failed on the RetailCloudPOS.
So then I deleted in IIS the RetailServer and the RetailCloudPOS, renamed the folders RetailSDK, RetailServer and RetailCloudPOS under the K-Drive. Now it fails at the beginning when it tries to run the stop script for the retail server:

"Stop script for service model: RetailServer on machine"

What else is needed for this development environment so that LCS can recognize that it has now an IIS-hosted CSU and stop looking for the RetailServer and RetailCloudPOS?
We cannot switch the other development environments to CommerceSDK until I can complete this one development environment to run CommerceSDK successfully and be upgraded to future standard versions successfully. I was able to run CommerceSDK successfully on this environment. The upgrade process is outstanding. This environment has only standard code on it, no custom yet and no ISV sealed packages yet. These will come later. We are just trying to get standard working from start to finish.