Windows Server 2012 Inplace upgrade fails

Attempting inplace upgrade of Windows Server 2012 (x64) to R2 (x64)

Server is virtual (vmware)
ISO downloaded from VLSC

Login to Windows run setup.exe

Installer quits with the following error (at the end of the first phase of the install):

[Setup cannot continue due to a corrupted installation file. Contact the vendor of your Windows installation disc or your system administrator for assistance.]

I've tried this with a new install of 2012 and upgrade to R2 with the same media -> no issues

Installed straight 2012R2 with no issues as well from the same iso.

Tried mounting the iso in Windows -> same error

Extracted iso -> same error

I've also tried both getting updates and not getting updates for Windows Setup.

Not sure where to go from here. Any help / suggestions would be great.

Logs:
Setupact.log

2013-11-27 11:11:53, Info IBS
ValidateOfflineImage: dism.exe returned with exit code [0x800F0830].

2013-11-27 11:11:53, Error [0x0606fd] IBS
ValidateOfflineImage: dism.exe returned with failing exit code
[0x800F0830]

2013-11-27 11:11:53, Error [0x0606f5] IBS
ValidateOfflineImage: An error occurred while validating
serviceability of offline image. Error code is [0x800F0830]

2013-11-27
11:11:53, Info [0x0640ae] IBSLIB PublishMessage: Publishing
message [Setup cannot continue due to a corrupted installation file.
Contact the vendor of your Windows installation disc or your system
administrator for assistance. ]

2013-11-27 11:11:53, Info
[0x0a013d] UI Accepting Cancel. Exiting Page Progress.

Setuperr.log

2013-11-27 11:00:57, Error [0x0808fe] MIG Plugin
{0b23c863-4410-4153-8733-a60c9b1990fb}: LoadLibrary error
(C:\Windows\system32\TableTextServiceMig.dll) gle=0

2013-11-27
11:03:05, Error [0x0808fe] MIG Plugin
{ee036dc0-f9b7-4d2d-bb94-3dd3102c5804}: BRIDGEMIG:
CBrgUnattend::CollectBridgeSettings failed: 0x1, 0

2013-11-27
11:03:22, Error [0x0808fe] MIG Plugin
{D12A3141-A1FF-4DAD-BF67-1B664DE1CBD6}: WSLicensing: Failed to read
machine binding, hr=0x80070002

2013-11-27 11:03:22, Error
[0x0808fe] MIG Plugin {D12A3141-A1FF-4DAD-BF67-1B664DE1CBD6}:
WSLicensing: Error reading Server Info hr=0x80070490

2013-11-27
11:11:22, Error CSI 0000012f (F) Component marked
deleted and is no longer available for:
[ml:280{140},l:138{69}]"amd64_sdbus.inf_31bf3856ad364e35_6.3.9600.16384_none_62a11cce9e4e184e"[gle=0x80004005]

2013-11-27 11:11:22, Error CSI 00000130 (F)
HRESULT_FROM_WIN32(50) #1246815# from
Windows::ServicingAPI::CCSIStore_ICSIStore::GetComponentInformation(flags
= 0, class = (unknown enumerant 2), information = [24]"[gle=0x80070032]

2013-11-27 11:11:22, Error CBS
Doqe: Failed processing queue [HRESULT = 0x80070032 –
ERROR_NOT_SUPPORTED]

2013-11-27 11:11:22, Error CBS
Doqe: Failed while processing driver operations queue. [HRESULT =
0x80070032 – ERROR_NOT_SUPPORTED]

2013-11-27 11:11:22, Error
CBS Failed to process single phase execution. [HRESULT = 0x80070032
– ERROR_NOT_SUPPORTED]

2013-11-27 11:11:22, Error CBS Failed to perform operation. [HRESULT = 0x80070032 –
ERROR_NOT_SUPPORTED]

2013-11-27 11:11:23, Error MIG
OC::COCDismAdapter::EnableDisableOCs: Image is not serviceable; cannot
proceed.[gle=0x0000007a]

2013-11-27 11:11:23, Error
MIG OC::CInstalledOCStore::ModifyOCsState: Failed to enable and
disable OCs; hr = 0x800F0830[gle=0x0000007a]

2013-11-27 11:11:23,
Error MIG Failed to restore OC status; HRESULT =
0x800F0830[gle=0x0000007a]

2013-11-27 11:11:24, Error
MIG OC Exception: [0x00000830]

2013-11-27 11:11:24, Error
[0x080717] MIG pUpgradeInstallOC: Failed to restore OC status.

2013-11-27 11:11:53, Error [0x0606fd] IBS
ValidateOfflineImage: dism.exe returned with failing exit code
[0x800F0830]

2013-11-27 11:11:53, Error [0x0606f5] IBS
ValidateOfflineImage: An error occurred while validating
serviceability of offline image. Error code is [0x800F0830]