Hello @James Krakowski
The setuperr.log indicates that Windows Setup encountered compatibility-scanning errors and was later interrupted or cancelled. However, it does not conclusively identify the original upgrade blocker.
Check C:\$WINDOWS.~BT\Sources\Panther\ for setupact.log, the latest CompatData*.xml, and *_APPRAISER_HumanReadable.xml.
Run SetupDiag to identify potential upgrade-blocking issues.
Review any reported compatibility or WMI errors before attempting repairs.
Back up the server and gracefully shut down running virtual machines during the maintenance window if Hyper-V is installed.
Relevant Microsoft documentation:
Identify upgrade blockers using compatibility logs
SetupDiag: Diagnose Windows Setup errors
Repair or in-place upgrade Windows Server
Recommendation: Review the compatibility XML and SetupDiag results first to identify the specific blocker before making system changes.
Many thanks.