Well I finally got a chance to look at this again and I believe I have found the problem. There is a method named GetInstalledVersion(). For whatever reason, our .67 database does not have a record for the version so the sql command SELECT SettingValue FROM HostSettings WHERE SettingName='Version' ends up returning NULL from the method.
The calling method (int DatabaseVersion = Convert.ToInt32(GetInstalledVersion().Replace(".", ""));) ends up getting a fatal exception and the upgrade stops.
I executed the following command using SQL Server Management Console against our bugnet database and now the upgrade will execute.
if not exists(select * from hostsettings where settingname = 'Version')
INSERT INTO HostSettings(SettingName,SettingValue) Values('Version','0.67')