ESXi upgrade from 6.7 to 7.0 failed on

I come across this strange issue that upgrades for ESXi 6.7 to 7.0 is failing on a few hosts with PSOD and the error being :

After reboot, the rollback works, and the host is back on the 6.7 version. Google is showing nothing regarding

I found this KB, but this is for a different module. 

I opened the case with VMware and I received the answer:

Solution 1 (not tested – suggested by VMware)

A similar issue was reported to Engineering, but it required a hot patch to resolve. However, there is a potential workaround, so please review the following and check if it is possible:

First, upgrade the host to the ESXi 7.0 U1 (or any lower than 7.0 U1 build), then confirm that the upgrade finishes as expected. After this, you should be able to upgrade to the desired ESXi build.

Solution 2 (tested – before I received the solution from VMware)

  1. Put ESXi host into Maintenance Mode
  2. Go to out-of-band access for your host and open KVM
  3. Attache ESXi ISO
  4. Reboot the ESXi host and boot from ISO
  5. Run upgrade (Please be aware that Upgrade is selected NOT Install)

The server will be upgraded.

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