Latif,  It sounds like the issue may be that the SD card currently has a Hypervisor installed on it, and is interfering with the new OS installation, but lets verify if it is OMSA causing. So lets uninstall OMSA from the server, then we can update firmware to the latest versions. From there we will need to install the newest supported version of OMSA. Let me know how it goes.  
We have a PowerEdge M620 and recently been upgrading this to Server 2016. During configuration/reboots post OS upgrade, I have noticed this error message in OMSA which I have never seen before or not sure what it means: "SD card device detected a failure Sensor location: SD1 Chassis location: Main System Chassis Previous state was: Other SD card device type: Hypervisor" Any ideas?
SD card device detected a failure Sensor