Hey kvv, I suggest you open a case with our support group. Then based on the outcome we can post the solution here. Did you retry running setup to see if it gets past it the second time?
i make upgrade version 220.127.116.11 to landesk 2016. I ran several times.
I had the same error...in fact, ended up with 3 in total. First and second errors were on the Upgrading Workspace Web Service step and the next was on the Configuring certificate for BridgeIT web service. I left the LANDesk install window open, verified Landesk services were stopped. Went into IIS and changed the Authentication for ConfigurationCenter and My.BridgeIT to enable Anonymous Authentication. Went back to the install window and clicked the retry button (or whatever it is called) and that seemed to get me by the first two errors. I later got an error on the Installing CBA8 step. Ran the cba8cleanup application (c:\program files\LANDesk\ManagementSuite\ldlogon) and that seemed to be it. Install succeeded after that.