An organization contacted me last week regarding a few failing Windows 10 upgrades, it was a few Windows 7 to Windows 10 v1909 upgrades failing with the following error:
InstallSecurityTemplate: Error in processing upgrade template. Error: 0x00000057 Cannot apply the security template for the new OS. Error: 0x80070057 Operation failed: Upgrade security. Error: 0x80070057[gle=0x000000b7] Operation execution failed: 26. hr = 0x80070057
The normal Windows 10 Inplace upgrade logs won't help you much troubleshooting an error like this, but what you can do is mimic what the setup is doing in this phase, but ask for more details. Simply run this command on the Windows 7 machine once it rolls back the attempted upgrade, and check the C:\Windows\security\logs\scesrv.log:
secedit /configure /cfg C:\Windows\inf\defltbase.inf /db defltbase.sdb /verbose
In this particular case the answer came quickly in the scesrv.log file. Basically pointing to a Konica Minolta Printer driver / application, but I've seen other examples where special security hardening also causes the 0x00000057 and 0x80070057 errors. For these cases the scesrv.log will also give you an idea what you need to change/remove.
Configure users\.default. Error 206: The filename or extension is too long. Error setting security on users\.default\software\KONICA MINOLTA\KONICA MINOLTA C658SeriesPCL\......
The organization uninstalled the Konica Minolta software, removed the registry key, and the upgrade worked fine on the next attempt.
Happy Deployment / Johan