Please move this to a new topic in the forum.
Is your VM Manager tool being updated first time or have you successfully updated the tool before?
As part of the update, the VMMAN folder is backed up, deleted and new folder will be created. Check the BESClient log for more details about the error.
Looks like this is permission issue to copy/create new folder under BESClient\LMT. Check the folder permissions for BESClient and LMT and VMMAN, grant any additional permissions and rerun the update task.