No, game does not update by itself. Just download the latest version and play. Your progress will be kept unless you delete from windows registry (which is not possible by accident).
Yes, in the demo version there are 3 locations.
There are 4 locations in Android and iOS versions.
You probaly downloaded the latest version but somehow running the previous version. Please delete all the existing game folders and extract the latest game zip file. I just downloaded and checked, it is working fine. Version is 5.0
