If you see this error in your MMI screen:
you have probably used SDCARD bigger than 32GB. MMI for updates can’t read sd cards bigger than 32GB – it has to be also formatted in FAT32!.
It might also show you when you trying to make update from wrong MMI menu (on photo you see Setup MMI which is wrong position to perform the update).. Every update has to be performed from Engineering Menu, how to get there you got in our tutorials here
Some customers also noticed this error when they are in Red Engineering menu when they was using MicroSD card and SD CARD adapter, when they have switched to the different adapter it start working too, so please also check that if you have this error when you are in Red Engineering menu.