Is this usage correct? “versions N and prior”
Solution 1:
I think either usage would be correct, but I would lean towards "versions" for clarity.
Another example is this:
Suppose you had four boxes, marked A, B, C and D. Two of the boxes contain prizes, the other two are empty. You might say
boxes A and B both contain a prize
or
boxes C and D are empty
In each case you are referring to a group of boxes, so you would use the plural form of box.
You could read
Version X and prior
as
Version X and prior [versions]
The word versions is implied in this case. This may be idiomatic rather than strictly grammatical, but I think the reader would understand.
Regarding the colon, it wouldn't be correct to use it within a sentence, but would be fine in a list.