KB484158: Metadata upgrade fails with error, “An object with name 'Palettes' and type 'Folder' already exists in the destination folder”

Description

When performing an upgrade via the Configuration Wizard, the upgrade fails with the following error:
[THR:140230630000384][MD Update][Info] UNEXPECTED ERROR: (0x80041023) An object with name 'Palettes' and type 'Folder' already exists in the destination folder […] [Error][0x80041F43] An unrecoverable error occurred during update.

Why is this happening?

This issue is a result of a system object having the incorrect GUID. This impacts projects that have been migrated from another metadata. During the upgrade process, Strategy will attempt to match GUIDs with the contents within that directory. If the correct GUID is found, the upgrade will proceed. If not, there will be an attempt to create a new object there. However, if the folder already exists with the incorrect GUID, the error will be yielded.

Solution

1. Enable hidden objects in Developer. For details, see KB19828 .
2. Navigate to the directory

   [Project Name]\Public Objects.

3. Delete the 

   Palettes 

   folder.
4. Perform the upgrade of your metadata.

Note: The

Palettes