The error you are seeing is due to a defect in the Windows Upgrade Appraiser. See the following article for a workaround: VMware KB: Upgrading to Windows 10 using Software Update in Windows 7 and Windows 8/8.1 virtual machines fail with t…
The following thread (and the specific post linked) has a potential workaround supplied by a fellow user: Re: Fix for Windows 10 Upgrade - VMware SVGA 3D issues
Cheers,
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Darius