1. vCD 9.5.0.3 appliance with external Postgres 10 DB -> Cloud Director 9.7.0.4 appliance with external Postgres 10 DB (Verify truststore is present) -> Migrate to Cloud Director 9.7.0.4 appliance with embedded Postgres DB -> Upgrade to Cloud Director 10.0.0.1 appliance.
(OR)
2. vCD 9.5.0.3 appliance with external Postgres 10 DB -> Cloud Director 9.7.0.4 appliance with external Postgres 10 DB (Verify truststore is present)-> Migrate to Cloud Director 10.0.0.1 appliance with embedded Postgres DB.
This will ensure you are using the latest migration tool available with the latest version.
Information on the migration steps are available in the Cloud Director documentation here, VMware Cloud Director Documentation.