Magento – Facing issue when running the command php bin/magento setup:upgrade

The exception thrown tells you that you're using an element <item /> where your not allowed to use one. So yeah, your problem is probably XML-related.

The first thing I do to make sure I write valid XML is setup my IDE so it can properly map the XSD-schemes. In PhpStorm you can do this by using the helper-thingy left to the xsi-namespace:

When all is set properly, your IDE will setup code completion for you and warn you if you're doing something that is not allowed:

I hope this helps you some.

Note: wrong version of the php is a main issue

Try to run this command in command line:

php -v

It is possible that your cli php is different from the server's php (cli php version is older than php version used by your server). If this is so, try to change path to the php used in cli.

Your problem occurs in a line of arguments of this method:

protected function createObject($type, $args)
{
    return new $type(...array_values($args));
}

becouse your cli php can not understand (parse) the ... symbols (Argument Unpacking) that is available for the php versions >= 5.6 .

PS: Here you can find an answer for the question "How to check php version on windows command line"