Why upgrading to Windows 10 anniversity edition fails

Question

After running upgrade Windows 10 to anniversity edition screen in blank. After computer restart windows 10 restores its previous version. Tried two times but problem persists.

How to upgrade ? Earlier Windows 10 works OK, all windows 10 uodates are installed.

C:\$WINDOWS.~BT\Sources\Panther\setuperr.log contains:

2016-08-06 11:20:32, Error                 MOUPG  CDlpActionImpl<class CDlpErrorImpl<class CDlpObjectInternalImpl<class CUnknownImpl<class IMoSetupDlpAction> > > >::Suspend(1066): Result = 0xC1800104
2016-08-06 11:20:32, Error                 MOUPG  CSetupManager::ExecuteInstallMode(735): Result = 0x800705BB
2016-08-06 11:20:32, Error                 MOUPG  CSetupManager::ExecuteDownlevelMode(391): Result = 0x800705BB
2016-08-06 11:20:32, Error                 MOUPG  CSetupManager::Execute(236): Result = 0x800705BB
2016-08-06 11:20:32, Error                 MOUPG  CSetupHost::Execute(372): Result = 0x800705BB
2016-08-06 11:30:37, Error      [0x0803b6] MIG    Can't retrieve group information for user IIS APPPOOL\DefaultAppPool. NetUserGetLocalGroups failed 0x000008AD
2016-08-06 11:30:43, Error                 SP     pSPRemoveUpgradeRegTree: failed to delete reg tree HKLM\SYSTEM\Setup\Upgrade[gle=0x00000005]
2016-08-06 11:30:54, Error      [0x0803b6] MIG    Can't retrieve group information for user IIS APPPOOL\DefaultAppPool. NetUserGetLocalGroups failed 0x000008AD
2016-08-06 11:30:57, Error      [0x080831] MIG    CSIAgent: Invalid xml format: FormatException: "id" attribute is mandatory. void __cdecl Mig::CMXEMigrationXml::LoadSupportedComponent(class UnBCL::XmlNode *,int,class Mig::CMXEMigrationXml *,class Mig::CMXEXmlComponent *)
2016-08-06 11:31:14, Error                 CSI    00000001 (F) 80220008 [Error,Facility=FACILITY_STATE_MANAGEMENT,Code=8] #90960# from CWcmScalarInstanceCore::GetCurrentValue(options = 393216 (0x00060000), status = [6]"(null)", value = { type: 40972 (0x0000a00c), bytes ( 12 (0x0000000c) ): 65006e002d00550053000000 })
[gle=0x80004005]
2016-08-06 11:31:17, Error                 CSI    00000002 (F) 80220008 [Error,Facility=FACILITY_STATE_MANAGEMENT,Code=8] #162347# from CWcmScalarInstanceCore::GetCurrentValue(options = 393216 (0x00060000), status = [6]"(null)", value = { type: 40972 (0x0000a00c), bytes ( 12 (0x0000000c) ): 650074002d00450045000000 })
[gle=0x80004005]
2016-08-06 11:31:51, Error      [0x080389] MIG    Failure while calling IDiscovery->Gather for Plugin={ServerPath="Microsoft-Windows-AppX-Deployment-Server\AppxUpgradeMigrationPlugin.dll", CLSID={AE27C1A6-25F2-45FD-9A28-081B81F29E0A}, ThreadingModel=Apartment}. Error: 0x80010105
2016-08-06 11:31:51, Error                 SP     Error READ, 0x80010105 while gathering/applying object: pre-scan, Action,CMXEPlugin,C:\$WINDOWS.~BT\Sources\ReplacementManifests,Microsoft-Windows-AppX-Deployment-Server\AppxUpgradeMigrationPlugin.dll,{AE27C1A6-25F2-45FD-9A28-081B81F29E0A},Apartment. Will return 2[gle=0x000000cb]
2016-08-06 11:31:54, Error                 CSI    00000003 (F) 80220008 [Error,Facility=FACILITY_STATE_MANAGEMENT,Code=8] #251064# from CWcmScalarInstanceCore::GetCurrentValue(options = 393216 (0x00060000), status = [6]"(null)", value = { type: 40972 (0x0000a00c), bytes ( 12 (0x0000000c) ): 650074002d00450045000000 })
[gle=0x80004005]
2016-08-06 11:32:02, Error      [0x0803b6] MIG    Can't retrieve group information for user IIS APPPOOL\DefaultAppPool. NetUserGetLocalGroups failed 0x000008AD
2016-08-06 11:32:07, Error      [0x080831] MIG    CSIAgent: Invalid xml format: FormatException: Component with display name: Plugin/{C939EC0F-2F56-4CE8-AF56-2336596A5FA7} already loaded __cdecl Mig::CMXEMigrationXml::CMXEMigrationXml(class Mig::CPlatform *,class UnBCL::String *,class UnBCL::XmlDocument *,class UnBCL::String *,class UnBCL::String *)
2016-08-06 11:34:54, Error      [0x0808fe] MIG    Plugin {ff9c714f-b864-4f43-ae39-ec07d7385abe}: Skipping device 'USB\VID_X00X&PID_Y00Y\695CF69C264A49E800001' without driver.
2016-08-06 11:34:54, Error      [0x0808fe] MIG    Plugin {ff9c714f-b864-4f43-ae39-ec07d7385abe}: Skipping device 'USB\VID_X00X&PID_Y00Y\695CF69C264A49E800002' without driver.
2016-08-06 11:35:03, Error      [0x0808fe] MIG    Plugin {526D451C-721A-4b97-AD34-DCE5D8CD22C5}: [shmig] Failed to get preferred homegroup with hr=0x80070490
2016-08-06 11:36:23, Error                        CSetupAutomation::Resurrect: File not found: C:\$WINDOWS.~BT\Sources\Panther\automation.dat[gle=0x00000002]
2016-08-06 11:36:23, Error                 SP     CSetupPlatform::ResurrectAutomation: Failed to resurrect automation: 0x80070002[gle=0x00000002]
2016-08-06 11:36:23, Error      [0x0803b6] MIG    Can't retrieve group information for user IIS APPPOOL\DefaultAppPool. NetUserGetLocalGroups failed 0x000008AD

This is Dell Precision M6600 ATI video driver is disabled in device manager (video card does not work stopped working) and external monitor with Dell builtin Intel HD graphics is used. Not sure is this related to this issue.

update

After running setup.exe from usb stick previous version is still resotered. However in this case the following message appears on startup:

This is posted here also:

http://answers.microsoft.com/en-us/windows/forum/windows_10-windows_install/error-when-upgrading-to-windows-10-0xc1900101/0e1c698a-6ea2-4bf0-aad4-0a26604f3200