Yes, they extracted from the zip first. This error also happens when you copy a client, whether zipped or not, from one Mac to another. I'm looking at Dejan's latest post, and assuming that this is what is happening.
This is not the issue of upgrade SERP. But serverip.dat in this case contains the value: 192.168.88.12:1301, so this is local IP of the server with SERP.
Anyway I don't understand what do you me...