I've compiled Trebuchet launcher from CyanogenMod 9, and trying to install it with adb:
$ adb install out/target/product/generic/system/app/Trebuchet.apk
3986 KB/s (7870141 bytes in 1.928s)
pkg: /data/local/tmp/Trebuchet.apk
Failure [INSTALL_FAILED_UPDATE_INCOMPATIBLE]
I tried on Nexus S with CM9 and Galaxy Nexus with stock JB. Why I'm getting this error?
EDIT: In my case I've tried to reinstall system package with package manager. That's not supported, so I've got this error. Source of the error may differ in your case.
I just renamed the package and it worked for me.
Or if you are using Ionic, you could delete the application and try again, this happens when ionic detects that the app you are deploying is not coming from the same build. It often happen when you change from pc.