Yes, image needs to be downloaded to a tftp/scp server and then should be copied from the switch. You can use copy tftp:// option if the server is a tftp server. Option 'compact' is supported for tftp as well.  

Compact option cannot be used for local copies, so from usb its not possible. You will have to download the image to a tftp/scp supported server and then copy the same from the switch console using the compact option. Please refer the below guide: ht...

Hi Adnan,    Can you please let me know how you copied the image to the switch the first time?  You can use tftp too, instead of scp, or any other option for remote copy, but make sure you copy from the switch itself and use compact keyword, as menti...

Hi,  This error is expected because the image needs to be of type compact. Please copy the image I7.4.bin again to the switch using the keyword 'compact' and try the upgrade again.  Eg:  MTC-CR# copy scp://<user>@<scp-server>/path-to-image/nxos.7.0.3...

Hi,  The upgrade path you mentioned is supported.  Can you please provide the output of the install all cmd when it gave an error?  In my lab, I tried the path - A8.4a -> A8.9 -> 7.0(3)I7(4) and upgrade does not give an error. MTC-CR# install all nxo...