The tool works only with the Windows 10 Home, Pro, and Education editions. If you're running the Windows 10 Enterprise edition, you receive the error message.
To resolve this issue, use a different method to upgrade to Windows 10 version 1607. For example, download the ISO, and then run Setup from it.
Article ID: 3188105 - Last Review: Aug 29, 2016 - Revision: 1