Psconfig failed at step 3 of 4 with the following error in upgrade log:
03/10/2012 12:26:18 8 WRN Unable to create a Service Connection Point in the current Active Directory domain. Verify that the SharePoint container exists in the current domain and that you have rights to write to it.
Microsoft.SharePoint.SPException: The object LDAP://CN=Microsoft SharePoint Products,CN=System,DC=Contoso,DC=com,DC=au doesn't exist in the directory.
at Microsoft.SharePoint.Administration.SPServiceConnectionPoint.Ensure(String serviceBindingInformation)
03/10/2012 12:27:19 8 INF Entering function TaskCommon.TraceToPsconfigLogAndUpgradeManagerLog
03/10/2012 12:27:19 8 INF Not spawing off the upgrade job, but rather running upgrade synchronously by calling SPFarm.Local.Upgrade() for inplace upgrade
03/10/2012 12:27:19 8 INF Leaving function TaskCommon.TraceToPsconfigLogAndUpgradeManagerLog
03/10/2012 12:53:07 8 ERR Task upgrade has failed with an unknown exception
03/10/2012 12:53:07 8 ERR Exception: Microsoft.SharePoint.Upgrade.SPUpgradeException: Upgrade completed with errors. Review the upgrade log file located in D:\Logs\Trace\Upgrade-20120310-122348-373.log. The number of errors and warnings is listed at the end of the upgrade log file.
03/10/2012 12:53:07 8 INF Entering function Common.BuildExceptionMessage
Fix: Gave the proper permission to the SharePoint container for the Farm account in AD and followed the below blog to ensure all the steps are in place: