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LSV = Fast Recon / Special Ops / Desert Ops Vehicle. Little or no protection. Just speed and off-terrain vehicle. ForceGurkha Procured LBPV = Mahindra Rakshak replacements with better features. Serious armor protection with better mobility than Rakshak. And probably added Remote weapons...

Army decided that having 800kg capacity was better than older 500kg offered by Gypsy :) That's the payload capacity which was enhanced. This procurement for General Service (GS) vehicle is meant for day-to-day officer/troop transport. So luxuries like AC/heating, power windows ,better comfort...

Gypsy (GS-500) got replaced by Tata Safari Storme (GS-800) as general service vehicle https://www.financialexpress.com/auto/car-news/tata-safari-storme-for-indian-army-revealed-will-replace-ageing-gypsy-in-militarys-fleet/1123810/