"This volume does not meet the requirements for this update."
That's got to be one of the most irritating error messages I've ever seen from Apple. "We saw something we don't like, so we're going to refuse to run,
and not give you the option to try anyway. We also won't be giving you a grain of useful information, and won't write anything helpful in any of the log files either. Good luck figuring out why we're unhappy!"
I ran into that error
numerous times trying to upgrade os x for users. Either running incremental or combo updaters, OR trying to (re)install OS X. I suspect it's something in the preflight or in the base installer, but was never able to identify it specifically. In almost every case I was forced to "hide" the OS (or delete it) and THEN run the base OS installer and updater, and finally reimport the user data.
