Thanks for your bugreport.
There is a package called "update-manager-core" that is suitable for a server
upgrade. Please install it and run:
$ sudo do-release-upgrade
This should walk your through a server upgrade. Please let me know if
that fixes your problem.
Cheers,
Michael
** Changed in: update-manager (Ubuntu)
Status: New => Incomplete
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upgrade-manager for server fails to upgrade distribution (feisty-edgy), despite
offering, for lack of a desktop installation
https://bugs.launchpad.net/bugs/149538
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