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Tweeker's post in Assemble and/or swap parts in space (or elsewhere) after craft launched? was marked as the answer
Upgrade is possible in a way,
If you build the satellite with a docking port, or in multiple section docked together then you can upgrade it by adding new sections.
Recovery is also possible, either by building a shuttle, or another craft with a heat shield to dock with the craft, or snare it with the claw,
and then bring it back.