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There is an entry you have to do in users.local file on all connected host where upgrade will be done.
Without this entry, it will not be able to locate RSCD agent on file server. Add it in users.local file and restart Upgrade.
Also check if you are able to do Agentinfo to File Server from App Server.
If issue is still coming then share BSA Upgrade logs to check exact error.
Thanks Vijay, adding entry in user.local file did the job.