how do you version your APIs effectively?

I'm having a tough time with API versioning strategies. We've been sticking to URI versioning, like /v1/users, but honestly, it's getting kind of awkward. It also makes our routing way more complicated than it needs to be. Have you guys tried other common methods, such as header versioning or query parameter versioning? Do those actually work out better in real life? What are the pros and cons, and how do you figure out when it's time for a whole new version instead of just making breaking changes to the one we already have?