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This message indicates Plesk is running the update process. I am not sure, but maybe that causes the upload problem? Any way, let it run for a while (a couple of hours), see what happens afterwards.
It looks like FTP is an option in this case. However, the other issue I am having is I am unable to update Plesk via Tools and Settings. Could this be a firewall issue?
I see your initial zip file is 1,5GB in size. I can imaging such a large file might take some time to upload (depending on your connection of course). Perhaps the Plesk session expired in the mean time? Which requires you to login again if you refresh the page. You could try to set a longer session time (Tools & settings > Session Idle Time)
Because I had issues, I decided to install Ubuntu and then install Plesk on it to see if I kept having the same issues. This was a fresh install, so I did not lose anything.