Recently while applying a fixpack, I encountered this error:

ERROR: An error occurred while setting DB2 runtime path. Contact a technical
service representative.
Setting DB2 library path :.......Failure
 DB2 Fix Pack Update log file finished at:  Sat Aug  1 18:23:29 2020 MDT
============================================================
Output was saved in the log file /tmp/db2chgpath.log.7667790
Sat Aug  1 18:23:29 MDT 2020
 
ERROR: There were errors during the run of the db2chgpath
program to change the embedded runtime path of the
related DB2 library and executable files
from
   /db2/software/IBM/db2/V9.7/
to
   /db2/software/IBM/db2/V9.7/
 
You may need to manually rerun db2chgpath.
Check the log file /tmp/db2chgpath.log.7667790 for details.
 
If the rerun is successful, please follow the DB2
quick beginning books to configure DB2 instance(s)
and/or DAS as needed.
 
If the problem persists, please contact IBM DB2 Support.

So I went ahead and checked the the log file /tmp/db2chgpath.log.7667790 where the output was saved:

-0-[root@lab-24] /db2/software/distribution/universal
# cat /tmp/db2chgpath.log.7667790
Starting the update of runtime path ...
Sat Aug  1 18:22:17 MDT 2020
 
Changing the embedded runtime path for DB2 deliverables installed
under /db2/software/IBM/db2/V9.7 from /db2/software/IBM/db2/V9.7/ to /db2/software/IBM/db2/V9.7/
---> Please wait
 
db2chglibpath: Unable to open file for write: '/db2/software/IBM/db2/V9.7/lib64/libDB2xalanMsg111.0.a': error: 26(Text file busy)
db2chglibpath: Unable to open file for write: '/db2/software/IBM/db2/V9.7/lib64/libDB2xml4c57.0.a': error: 26(Text file busy)
db2chglibpath: Unable to open file for write: '/db2/software/IBM/db2/V9.7/lib64/libDB2xslt4c111.0.a': error: 26(Text file busy)
db2chglibpath: Unable to open file for write: '/db2/software/IBM/db2/V9.7/lib64/libdb2.a': error: 26(Text file busy)
db2chglibpath: Unable to open file for write: '/db2/software/IBM/db2/V9.7/lib64/libdb2dascmn.a': error: 26(Text file busy)
db2chglibpath: Unable to open file for write: '/db2/software/IBM/db2/V9.7/lib64/libdb2dstf.a': error: 26(Text file busy)
db2chglibpath: Unable to open file for write: '/db2/software/IBM/db2/V9.7/lib64/libdb2e.a': error: 26(Text file busy)
db2chglibpath: Unable to open file for write: '/db2/software/IBM/db2/V9.7/lib64/libdb2g11n.a': error: 26(Text file busy)
db2chglibpath: Unable to open file for write: '/db2/software/IBM/db2/V9.7/lib64/libdb2genreg.a': error: 26(Text file busy)
db2chglibpath: Unable to open file for write: '/db2/software/IBM/db2/V9.7/lib64/libdb2install.a': error: 26(Text file busy)
db2chglibpath: Unable to open file for write: '/db2/software/IBM/db2/V9.7/lib64/libdb2locale.a': error: 26(Text file busy)
db2chglibpath: Unable to open file for write: '/db2/software/IBM/db2/V9.7/lib64/libdb2osse.a': error: 26(Text file busy)
db2chglibpath: Unable to open file for write: '/db2/software/IBM/db2/V9.7/lib64/libdb2osse_db2.a': error: 26(Text file busy)
db2chglibpath: Unable to open file for write: '/db2/software/IBM/db2/V9.7/lib64/libdb2sdbin.a': error: 26(Text file busy)
db2chglibpath: Unable to open file for write: '/db2/software/IBM/db2/V9.7/lib64/libdb2trcapi.a': error: 26(Text file busy)
db2chglibpath: Unable to open file for write: '/db2/software/IBM/db2/V9.7/lib64/libicudatadb232.1.a': error: 26(Text file busy)
db2chglibpath: Unable to open file for write: '/db2/software/IBM/db2/V9.7/lib64/libicudatadb238.1.a': error: 26(Text file busy)
db2chglibpath: Unable to open file for write: '/db2/software/IBM/db2/V9.7/lib64/libicui18ndb232.1.a': error: 26(Text file busy)
db2chglibpath: Unable to open file for write: '/db2/software/IBM/db2/V9.7/lib64/libicui18ndb238.1.a': error: 26(Text file busy)
db2chglibpath: Unable to open file for write: '/db2/software/IBM/db2/V9.7/lib64/libicuiodb232.1.a': error: 26(Text file busy)
db2chglibpath: Unable to open file for write: '/db2/software/IBM/db2/V9.7/lib64/libiculedb232.1.a': error: 26(Text file busy)
db2chglibpath: Unable to open file for write: '/db2/software/IBM/db2/V9.7/lib64/libiculxdb232.1.a': error: 26(Text file busy)
db2chglibpath: Unable to open file for write: '/db2/software/IBM/db2/V9.7/lib64/libicuucdb232.1.a': error: 26(Text file busy)
db2chglibpath: Unable to open file for write: '/db2/software/IBM/db2/V9.7/lib64/libicuucdb238.1.a': error: 26(Text file busy)
 
------------------------------------------------------------------
The embedded library path of the following files could not be
updated with the current installation path
   /db2/software/IBM/db2/V9.7/.
due to some unexpected error. Please rerun db2chgpath. If the
problem can not be resolved, please contact IBM DB2 Support.
------------------------------------------------------------------
 
FAIL (unexpected error): /db2/software/IBM/db2/V9.7/lib64/libDB2xalanMsg111.0.a
FAIL (unexpected error): /db2/software/IBM/db2/V9.7/lib64/libDB2xml4c57.0.a
FAIL (unexpected error): /db2/software/IBM/db2/V9.7/lib64/libDB2xslt4c111.0.a
FAIL (unexpected error): /db2/software/IBM/db2/V9.7/lib64/libdb2.a
FAIL (unexpected error): /db2/software/IBM/db2/V9.7/lib64/libdb2dascmn.a
FAIL (unexpected error): /db2/software/IBM/db2/V9.7/lib64/libdb2dstf.a
FAIL (unexpected error): /db2/software/IBM/db2/V9.7/lib64/libdb2e.a
FAIL (unexpected error): /db2/software/IBM/db2/V9.7/lib64/libdb2g11n.a
FAIL (unexpected error): /db2/software/IBM/db2/V9.7/lib64/libdb2genreg.a
FAIL (unexpected error): /db2/software/IBM/db2/V9.7/lib64/libdb2install.a
FAIL (unexpected error): /db2/software/IBM/db2/V9.7/lib64/libdb2locale.a
FAIL (unexpected error): /db2/software/IBM/db2/V9.7/lib64/libdb2osse.a
FAIL (unexpected error): /db2/software/IBM/db2/V9.7/lib64/libdb2osse_db2.a
FAIL (unexpected error): /db2/software/IBM/db2/V9.7/lib64/libdb2sdbin.a
FAIL (unexpected error): /db2/software/IBM/db2/V9.7/lib64/libdb2trcapi.a
FAIL (unexpected error): /db2/software/IBM/db2/V9.7/lib64/libicudatadb232.1.a
FAIL (unexpected error): /db2/software/IBM/db2/V9.7/lib64/libicudatadb238.1.a
FAIL (unexpected error): /db2/software/IBM/db2/V9.7/lib64/libicui18ndb232.1.a
FAIL (unexpected error): /db2/software/IBM/db2/V9.7/lib64/libicui18ndb238.1.a
FAIL (unexpected error): /db2/software/IBM/db2/V9.7/lib64/libicuiodb232.1.a
FAIL (unexpected error): /db2/software/IBM/db2/V9.7/lib64/libiculedb232.1.a
FAIL (unexpected error): /db2/software/IBM/db2/V9.7/lib64/libiculxdb232.1.a
FAIL (unexpected error): /db2/software/IBM/db2/V9.7/lib64/libicuucdb232.1.a
FAIL (unexpected error): /db2/software/IBM/db2/V9.7/lib64/libicuucdb238.1.a

Following the suggestion in the log, I went ahead and executed db2chgpath.

db2chgpath is used by the Db2® database installer on Linux® and UNIX operating systems to update the embedded runtime path in the related Db2 database library and executable files. The command can be reissued under the direction of IBM® Db2 database support if there were errors related to the command during the Db2 database installation.

The executable is located where your software has been installed. You can get that location by checking the output from db2level:

In my case, the product is installed at /db2/software/IBM/db2/V9.7. You can then change to that location and go to the install subdirectory. You will need to login as root to run this:

-0-[root@lab-24] /db2/software/IBM/db2/V9.7/install
# ./db2chgpath
The output will be saved in /tmp/db2chgpath.log.13041676
Starting the update of runtime path …
Sat Aug  1 18:36:59 MDT 2020
Changing the embedded runtime path for DB2 deliverables installed under /db2/software/IBM/db2/V9.7 from /db2/software/IBM/db2/V9.7/ to /db2/software/IBM/db2/V9.7/
---> Please wait
Output was saved in the log file /tmp/db2chgpath.log.13041676
Sat Aug  1 18:38:07 MDT 2020
Program db2chgpath completed successfully.

After this, I also did a db2iupdt, to make sure there were no issues running this after the db2chgpath:

-0-[root@lab-24] /db2/software/IBM/db2/V9.7/instance
# ./db2iupdt -k db2admn1
DBI1070I  Program db2iupdt completed successfully.

This resolved the issue and the fixpack was upgraded successfully.