Hey,
According to the documentation, in-place upgrade from 2008r2 to 2016 is not supported.
https://learn.microsoft.com/en-us/windows-server/failover-clustering/upgrade-option-same-hardware
In order to finish the process, it would be better to create a new cluster and migrate existing SQL Server Instances to it. The following guide should help:
https://www.starwindsoftware.com/resource-library/starwind-virtual-san-installing-and-configuring-sql-server-2017-failover-cluster-instance-on-windows-server-2016/
Cheers,
Alex Bykovskyi
StarWind Software
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