Having issues as well. Shows installed on my Incredible 2 Indicated I needed update. Loaded update (set to update automatically). Indicates new upgrade available. I select upgrade. Tells me it loaded. I select open takes me back to upgrade message. When I receive a call I sometimes receive notification indicating the app failed and need to force stop. I tried to manually install as well. Did not work. I am not on WiFi. Had issue since i received the phone last Thursday.
I had this problem as well last week. Over the weekend I got an message to input ID # and passwrod. Used my standard verizon login credentials and the app worked ok.
I was having similar problems with the DX2 - the Verizon Mobile app worked fine with the DX2 out of the box, but after rooting and debloating, it was the only app that didn't work. Gave notice that it needed to update, would update, and install correctly, but when you would run the app again gave notification to update again or cancel. I tried uninstalling and reinstalling the update several times. No luck. I read (i think in the market forum for the Verizon Mobile app) nearly all the users were having the same exact problem. One dude said he had a DX2, and he installed the update and immediately rebooted and it worked fine.
So i tried uninstalling the update, rebooted the phone, then re-installed the update from the market, waited till it successfully installed, then rebooted, and it works great.
I don't know if that will help anyone, but it did fix my particular issue.