Error:

[InstallationError][Errno 28] No space left on device
vibs = VMware_locker_tools-light_10.3.5.10430147-12986307

The solution is to manually upgrade VMware_locker_tools package by following these steps via SSH on the host:

  1. cd /tmp
  2. wget http://hostupdate.vmware.com/software/VUM/PRODUCTION/main/esx/vmw/vib20/tools-light/VMware_locker_tools-light_10.3.5.10430147-12986307.vib
  3. esxcli software vib install -f -v /tmp/VMware_locker_tools-light_10.3.5.10430147-12986307.vib
  4. Update / upgrade as normal

I recommend watching https://esxi-patches.v-front.de/ESXi-6.7.0.html for ESXI updates. Amazing resource.