I'm running Sims 3 World Adventures and Ambitions. My game version is 0.2.0.104
All .package file have worked so far (installing in proper location/folder), but skins won't. Non default won't show up under the skin tone button and defaults won't work either. I tried deleting the cache files prior to launch, still no luck.

Do I need to update or is there any other work-around?

There's no version 0.2.0 - looks like you misread. Could you post your full basegame version (the one that starts 1.x)?

hmm, that's what shows when I hover over the icon.
What about 4.0.87.006001?

edit: Oh I see, I think..
1.12.70.0060002

Well, the current patch level for Base game is 1.34, so you are way behind. Patching probably couldn't hurt, other than making you have to fix or redownload all of your CC. (Anything made after patch level 1.24 is not likely to work in a game that stopped patching at that point or earlier. If it is an object, it could end up causing a fatal glitch in your game. They changed the way sims interact with things when pets came out.) I admit that I am not the one to advocate patching (As I'm one of the ones who stopped at 1.24 ) but if you have new CC that isn't working that might be why.