Yes, you need to reinstall packages when updating the compiler.
However, if you delete ~/.ghc , this will remove the packages from the point of view of GHC. You can also delete ~/.cabal and reinstall everything, but binaries in ~/.cabal/bin (including cabal ) will usually work, so it is often easier to save them and save some time (see what is there) . Perhaps some problems may be problems - I think some binary files can be hardcoded using the GHC protocol, so they will be broken, but you can always reinstall them.
~/.cabal/packages contains cache files, so you can delete this. The data will simply be torn down again the next time you run the bondage. If in doubt, just delete it.
You must remove ~/.cabal/lib which contains the compiled packages and will not be compatible with other GHC. Similarly for ~/.cabal/share .
If you did not edit the ~/.cabal/config file manually and want to save the changes, you can delete it and create a new one.
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