For example, for androidx.constraintlayout.constraintlayout the SDK Manager shows the version 1.1.3, while 2.0.4 is available. This causes an issue when updating com.google.android.material.material to version 1.3.0 from the available 1.2.0, since it requires at least version 2.0.1 of constraintlayout. Installing the latest version manually fixes the error.
This is done intentionally as there were issues with the latest version of this resource. The issue was resolved in v10.7 but the limit is still there (as there are other third part SDKs that don't support the latest versions).