Caching in Custom Scripting Service

I have some query regarding caching in Custom Scripting service. I had created a custom service and was working fine. But I de-activated it in the services console, the changes did not reflect until I cleared System Wide cache in the Config Tab. Is this the default Behavior of Caching? Also I upgraded my DSP Instance as specified in to 2.0.4

Is this the Issue with the upgrade? Did it break the DSP Default functionality?? or this is how it works?

Also I Changed the Default System Database to MySQL, Does does it need any Configuration change when I change System Database?