vCenter 6.7 update failed – Update installation failed, vCenter is non-operational

I tried to update vCenter 6.7 to vCenter 6.7 Update 1 through Appliance Management web page and as soon as I pressed “Finish” on the update wizard I got an error – Update installation failed, vCenter is non-operational.

I checked the software-packages.log in /var/log/vmware/applmgmt folder but did not notice anything.

Tried running the update from command line: software-packages install –url and the upgrade worked without any issues.