Per the documentation, "A generation data set is created each time the file is updated". We use Proc SQL to update and insert into an existing dataset, but are finding generations are not created. Is there a Proc Sql parameter that needs to be specified to generate the generation datasets?
I would recommend contacting SAS support for further guidance. I see no tech notes on the support website specifically about generation data sets and PROC SQL interaction. If PROC SQL is not supported, it should be clearly stated in the SAS DOC under the topic Understanding Generation Data Sets, in the SAS Language Reference: Concepts guide.