I have realized that finding the current version number of any tool takes effort, like going into preferences/setting. It makes sense to me to add it alongside software name, like instead of just saying 'Sketch', the nav panel can say 'Sketch 70.2'. Will this cause any usability issue I am not able to see?

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I would imagine these types of decision consider where it sits in the overall information hierarchy and hopefully metrics such as how often the information is accessed to determine where and how to display it.

In the case of a version number I would guess for many systems it ranks quite low in comparison with other information.

Additionally, it's worth considering that such a value is likely fairly static and the use cases for needing the information infrequent compared to other functions within a given tool.

I would also suggest considerations like Jakob's law (https://lawsofux.com/jakobs-law.html) would influence placing the version number in a location similar to other applications, so normally an "about", "help" or "settings" location.

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