I had the same issue upgrading my ESA to 10.6.1.1. It appears that there was some sort of mismatch in the $sarelease variable that NetWitness was reporting. I couldn't correct the issue (my SA head is not internet connected, and I confirmed the settings for Live were disabled in the document above) but my workaround was to edit the RSASoftware.repo file to reflect the baseurl as http://puppetmaster.local/rsa/updates/10.6.1/.
Be sure to backup your repo config file before making any changes. I believe I also may have had to run the yum update from an ssh session on the ESA, as running the update through the GUI will force a puppet agent -t as part of the preupgrade checks.
If the ESA appliance is at 10.6.0.0, the next logical step is 10.6.0.2, 10.6.1.0 or 10.6.2.0, depending on what you have uploaded to the local SA repository. If the repo on SA is downloading from the online repo, by now it would have the 10.6.2 files.
Are you updating from the UI or are you trying to update via command-line yum?
Check Administration -> System -> Updates, is Connect to Live Update Repository checked?
Click on the "Manage Repository" button and see what versions (if any) are loaded into the repo.
Due to an issue with patch releases, if you have uploaded 10.6.1.1 to the repo manually, it will NOT let you update to 10.6.1.0 first and then to 10.6.1.1.
You would need to remove everything from the "manage repository" screen, then remove anything in the repo folder (/var/netwitness/srv/www/rsa/updates) and then manually upload the 10.6.1 files (7 part zip), update any systems to 10.6.1, then upload the 10.6.1.1 files (5 part zip) and upload to 10.6.1.1.
If you are downloading the update from smcupdate then refresh the repository, synchronize it and then try to update.
If you are updating manually and getting this error then simply edit the sa.repo file by just changing the value i.e. enabled=0 save it and run 'yum clean all' after that try to update the SA first and then all appliances.
Mohd is correct, if you are attempting to perform a manual update, ensure the enabled variable is set to 0 (enabled = 0), this will by-pass the online update check in the pre-installation check process. Just ran into this issue myself!