Comment 1 for bug 821283

You have a garbage file in .bzr/repository/upload which is confusing us while fetching new content.

If you have no bzr process running, then you should have no content in .bzr/repository/upload (it is a temporary staging area.)

You can try just deleting all files in that directory (do not delete the directory itself). And see if 'bzr update' works again. It sounds like it is failing to download because it got the same content as a previous download that was killed.

On POSIX systems (Mac and Linux) this won't fail, because it will just overwrite the target file.

It would also be useful to see the full traceback (from your .bzr.log file, see 'bzr --version' for information on where that file lives.)