Hi Sweehan,
Seems to be a corrupted Zip. Did you check the md5 ?
What's kind of method are you using to upgrade? Are you using Oneclick upgrade?
You should check the HCL from Nutanix portal to see if 7.0U3 is supported with your HPE server and use one click upgrade if you can (official method supported if i'm not wrong). You should find the json file on the hypervisor list in nutanix website