Windows 10: Unable to upgrade from Win 8.1 to Win 10 due to C:\$windows.~bt file

I am on Windows 8.1 and tried the automatic upgrade to windows 10. I was eligible and hit upgrade. Midway the whole thing rolled back and ever since I just cannot upgrade using windows update.
After reading forums, tried upgrading using the install media. Unable to do that either.
With even more research, figured out the culprit is c:\$windows.~bt folder.
Tried Disk Clean up - did not delete
Tried Ownership of the folder, works for the folders but says a file in there is corrupt or not readable.
Used command prompt in admin mode to RMDIR but wont work either.
Used the program UNLOCKER to try and delete, unable to delete and says "Object cannot be Deleted. Do you want to perform the operation on next reboot". Rebooted but still didnt work.
So no matter what I do, I cannot seem to delete the file that is almost 6 GB and cannot upgrade to Windows 10.

Here is the File details

file:///C:/$Windows.~BT/NewOS/Windows/WinSxS/amd64_c_computer.inf.resources_31bf3856ad364e35_10.0.10240.16384_en-us_854ffddc7d3b657e.16384_EN-US_854FFDDC7D3B657E
Size 6,199,770 KB
Type 16384_EN-US_854FFDDC7D3B657E File

Machine is a Dell XPS 12 Q933

:)

 

Hmm...
Did you try a file compressor? Since 6,199,770 kilobytes is a lot of kb.

 

You should be able to delete from a Linux Live CD/DVD/flash drive.