I have same issue, when upgrading from 15.7(3) M2 to 15.9(3)M. Workaround (removing ssh source interface) did not worked.
I tried upgrading IOS from configured router and because it failed, I tried it after erasing config. And it also failed. Upgrading only GOS worked. But when I try to upgrade IOS, process ends with error, process attached.
IR800#bundle install flash:ir800.bin exclude GOS
*Mar 3 09:10:01.693: %SYS-5-CONFIG_I: Configured from console by console
Installing bundle image: /ir800.bin, exclude Guest OS image............................................................................
updating Hypervisor image...
% Authentication failed.
%Error copy from scp://*:*@127.1.3.1//vds_system/bundle/ir800-hv.srp.SPA.3.0.83 to bootstrap:ir800-hv.srp.SPA.3.0.83
Make sure SSH source interface is not configured.
Failed to install hypervisor image!
IR800#show version
Cisco IOS Software, ir800 Software (ir800-UNIVERSALK9-M), Version 15.7(3)M2, RELEASE SOFTWARE (fc2)
Technical Support: http://www.cisco.com/techsupport
Copyright (c) 1986-2018 by Cisco Systems, Inc.
Compiled Wed 28-Mar-18 05:07 by prod_rel_team
Any suggestions?