diff --git a/docs/developer/setup.rst b/docs/developer/setup.rst
index da542435f..1843b5734 100644
--- a/docs/developer/setup.rst
+++ b/docs/developer/setup.rst
@@ -83,6 +83,14 @@ pull`` just run :git_url:`setup_within_klayout.py` again. This will take care of
 KQCircuit's Python dependencies and installing new ones, as needed. Running KLayout will similarly
 update KQCircuits' dependencies in its own Python environment.
 
+If the above didn't work (usually in case of downgrading dependencies), there is an alternative way.
+If you see warnings displaying
+``WARNING: Target directory xyz already exists. Specify --upgrade to force replacement.``,
+this usually indicates that KQCircuits's Python dependencies were not properly upgraded (or downgraded).
+In that case run the following:
+
+    python3 setup_within_klayout.py --force-package-reinstall
+
 .. note::
     If a new version of KQCircuits has stopped using a certain Python dependency that will **not**
     be removed automatically. The user has to remove that manually if it causes any problem.
diff --git a/docs/user_guide/xsection.rst b/docs/user_guide/xsection.rst
index 44727f4f9..988afe303 100644
--- a/docs/user_guide/xsection.rst
+++ b/docs/user_guide/xsection.rst
@@ -36,6 +36,13 @@ generation for simulation files.
 An example of using XSection tool to produce cross-section simulation files is
 demonstrated in :git_url:`klayout_package/python/scripts/simulations/waveguides_sim_xsection.py`
 
+.. note::
+   XSection 1.7 does not work immediately after package install due to the improvement
+   to backwards compatibility with older Ruby versions. To mitigate the issue,
+   you need to make a change in the XSection code. From you KLayout environment directory,
+   open ``KLayout/salt/xsetion/ruby/xsection.rb`` file in editor and change line 200
+   from ``pts << [[[ p1, p2 ]]]`` to ``pts << [[ p1, p2 ]]``
+
 Process files (.xs)
 -------------------
 
diff --git a/klayout_package/python/setup.py b/klayout_package/python/setup.py
index 645dd0b30..94979517e 100644
--- a/klayout_package/python/setup.py
+++ b/klayout_package/python/setup.py
@@ -53,11 +53,11 @@ def get_version_and_cmdclass(package_name):
         # in elmer_export.py and gmsh_helpers.py, consider adding if more features are needed.
     ],
     extras_require={
-        "docs": ["sphinx~=4.4", "sphinx-rtd-theme~=0.4", "networkx>=2.7", "matplotlib>=3.5.1"],
+        "docs": ["sphinx~=4.4", "sphinx-rtd-theme~=0.4", "networkx>=2.7,<3.2", "matplotlib>=3.5.1"],
         "tests": ["pytest>=6.0.2", "pytest-cov~=2.8", "pytest-xdist>=2.1", "tox>=3.18", "pylint==2.9",
-                  "networkx>=2.7", "matplotlib>=3.5.1"],
+                  "networkx>=2.7,<3.2", "matplotlib>=3.5.1"],
         "notebooks": ["jupyter~=1.0.0", "klayout>=0.28"],
-        "graphs": ["networkx>=3.0", "matplotlib>=3.6.3"],
+        "graphs": ["networkx>=3.0,<3.2", "matplotlib>=3.6.3"],
         "simulations": ["gmsh>=4.11.1", "pandas>=1.5.3"],
     },
     entry_points={
diff --git a/requirements_within_klayout_unix.txt b/requirements_within_klayout_unix.txt
index 67ae5a06c..e28655af0 100644
--- a/requirements_within_klayout_unix.txt
+++ b/requirements_within_klayout_unix.txt
@@ -4,4 +4,4 @@ numpy>=1.16
 scipy>=1.2
 Autologging==1.3.2
 tqdm==4.61
-networkx>=2.7
+networkx>=2.7,<3.2
diff --git a/requirements_within_klayout_windows.txt b/requirements_within_klayout_windows.txt
index c78477079..11c1a9159 100644
--- a/requirements_within_klayout_windows.txt
+++ b/requirements_within_klayout_windows.txt
@@ -7,4 +7,4 @@
 
 Autologging==1.3.2
 tqdm==4.61
-networkx>=2.7
\ No newline at end of file
+networkx>=2.7,<3.2
\ No newline at end of file
diff --git a/setup_within_klayout.py b/setup_within_klayout.py
index 0f1536c34..4bc024e7f 100644
--- a/setup_within_klayout.py
+++ b/setup_within_klayout.py
@@ -57,6 +57,8 @@ def get_klayout_packages_path(path_start):
 
     parser = argparse.ArgumentParser(description='KQC setup within klayout')
     parser.add_argument('--unlink', action="store_true", help='remove links')
+    parser.add_argument('--force-package-reinstall', action="store_true",
+                        help='force reinstalling packages that KQCircuits depends on')
     args = parser.parse_args()
 
     configdir = klayout_configdir(kqc_root_path)
@@ -89,6 +91,8 @@ def get_klayout_packages_path(path_start):
         else:
             raise SystemError("Unsupported operating system.")
 
+        if args.force_package_reinstall:
+            pip_args += " --upgrade"
         print(f'Required packages will be installed in "{target_dir}".')
         os.system(f"pip install -r {pip_args}")
         print("Finished setting up KQC.")