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I opened a ticket w/ VMware and was told that the latest version (6.5 U1c) addresses the issue.
Please be informed that this is a known issue affecting version 6.0 U2 and later. To resolve the issue, perform upgrade to latest version of 6.5 i.e. 6.5 U1c.
I am retrying an upgrade now, using the new ISO (which apparently came out the very day that I downloaded the previous one). I'll post my results here.
EDIT: I used the most updated ISO (VMware-VCSA-all-6.5.0-7119157.iso) and am still getting the same error. I have sent my feedback back to VMware.