The first version of the KB 87120 was released without upgrade support. This was noted in the Impact / Risks section of the article with the request to re-install the next version of the KB released on December 20, 2021. On some customer environments this was not done, resulting in the upgrade failure.
Resolution
VMware is aware of this issue and working to resolve this in a future release.
Workaround: Before starting the upgrade:
Take simultaneous VM snapshots, without memory, of all nodes in the cluster.