Steps to reproduce:
1. Create a Site with a page
2. Upload a document to the Documents and Media portlet
3. Checkout your document
4. Check the the dlfileversion table in your database, there will be two entries for your document, one with "PWC" as version.
5. Enable Local Staging on your Site.
6. Publish from Staging to Live. Change default behavior "From Last Publish Date" to "All" under the Content section.
Actual Result: Publication fails with InvalidFileVersionException. If you check the dlfileversion table again, you will notice that there is only one entry with version "PWC", and that belongs to the Live group.
Expected Result: Successful publication.