The "New Version" creates a replica of an existing application of any state. The only difference will be the version and the application state. And for API type application, you can also create a revision of the application.
The new application will have the state "In Development" on the creation of a new application version. You can save the time by creating the same application again if it fails at any point. You can modify the cloned application when in the "In Development" state. You can modify all parameters except the app name, app type and hosting type.