To work around this issue, assign Read/Write attributes to the file.
Alternatively, you can also manually remove the file. When you install VMware Tools the next time, a new VMwareToolsUpgrader.exe file is created with Read/Write attributes.
By default, the Temp directory is located at C:\Windows\. However, the location of the Temp directory may vary. To find the exact location of the Temp directory, open the vmware.log file of the virtual machine, located at /vmfs/volumes/datastore/VM/, and check the entry above the error message similar to:
vmx| TOOLS INSTALL Copying upgrader files from /usr/lib/vmware/tools-upgraders into guest at C:\WINDOWS\TEMP
vcpu-0| TOOLS INSTALL Error copying upgrader binary into guest. success = 0, HgfsStatus = 8.
Note: On Windows 2008 R2, this issue may occur if the %temp% directory does not exist. Create this directory to resolve the issue. Windows 2008 R2 (VMware Tools and virtual machine hardware upgrade) is supported only with VMware vCenter Update Manager 4.0 Update 3. For more information, see the VMware vCenter Update Manager Release Notes.