Problem with in-place upgrade

What version you currently have and which ISO file you're using?

The reason why your data can't be kept is mentioned in that window at bottom.

A workaround could be backup your personal files to external drive or OneDrive and then restore data back after in-place upgrade.

If you're trying to fix multiple issues, you may alternatively try reset without affecting your data:

https://www.kapilarya.com/how-to-reset-windows-11-without-losing-your-data

Hope this helps!

Note: Included link in this reply refers to blog post by a trusted Microsoft MVP.