I cannot confirm that my error was the same as yours, but yesterday
I've made this same upgrade with a project, and it hanged with the
--upgrade when starting domain. Searching web about it, I've found this
post -
http://thegreyblog.blogspot.com/2011/02/upgrading-oracle-glassfish-serv
er-to-v.html - that tells that there is an issue related with OSGi
cache after the domain's upgrade.
After stopping the server, deleting the cache folder, I was able to
start-domain without problems. Should it be put in account? (I was not
using Netbeans!)