Whilst trying to upgrade from 7.6.3 to 7.11 I get the error "Protected Modules path can't be found".I have checked my web.config and it shows not sure what I'm doing wrong.
Do you have this kind of element too:
I think you should read this: http://world.episerver.com/Blogs/Khurram-Hanif/Dates/2014/3/EPiServer-76-Protected-Site-Add-Ons-location/
See at the end the command: Move-EPiServerProtectedModules
(assumig the ~/epi/ is your relocated UI url)