Same happen to me. I am trying to install vmware tools on windows 7 guest, not upgrade, and I get the same error as you submited @Ronald Voyals.
Is there someone to reach for this problem?
**Update - 2 solutions:
Solution 1:
When you click on install Vmware-tools, the iso image that is loaded is windows-x86.iso, located usually in:
C:\Program Files (x86)\VMware\VMware Workstation
when you are using a 64 bit windows machine, you need to choose the windows.iso file instead,which is located in the same directory of windows-x86.iso, and it is the vmware-tools iso file that is compatible with 64 bit machines. In order to do this, you need to go to the VM settings->Hardware->CD/DVD(SATA)->Use ISO image file
and then select the windows.iso file
After that, you should see the D drive in the windows machine, with setup.exe file, and this will work for 64 bit (at least this worked for me).
Solution 2:
if you need a specific version of vmware tools (like in my case for windows 7, since the latest vmware-tools version is not compatible with windows 7, look at this link
https://packages.vmware.com/tools/releases/
you should have there a lot of iso images to different versions of vmware tools
you can find information about vmware tools version comptability to different windows machines in this link:
https://knowledge.broadcom.com/external/article/313371/vmware-tools-compatibility-with-guest-op.html
after that, you should mount the iso image as a cd drive in order the guest machine will detect it.
and then you should find the setup64.exe file. and then, normal installation.
this is a workaround however, and not an optimal solution (took almost 1 hour of searching)