PCLZIP_ERR_BAD_FORMAT (-10) when trying to upgrade from 1.7.3 to 2.x

PCL Zip is the historic fallback that WP (and, therefore, CP) uses when it doesn’t detect the PHP Zip library. I doubt it’s been subject to much development for years, so that’s probably why it’s failing. The question is why you’re still falling back to it rather than using the PHP Zip module you’ve added.

Have you tried stopping and re-starting the server or trying PHP 8.3 instead?

EDIT: The other thing to check for is that you have enough space on the disk for the update to happen.