Though, it is not recommended by SLES for in-place upgrade of SLES 11 SP1 to SLES 12 (Without any patch), due to the product requirements, this has been done and found to be working successfully.
But, we want the steps within the upgrade to be automated.

The following was tried as per "Unattended Upgrade Feature in SUSE Linux Enterprise Server - Solution Guide"

We created an autoupg.xml file and copied it to the /root/ directory
We mapped the SLES 12 iso file to the DVD ROM (virtual)
Rebooted the machine and selected the upgrade option.

The upgrade was still in manual mode and did not recognize the autoupg.xml file that was supplied.

Any specific setting needs to be enabled or is there a standard way how we need to supply autoupg.xml ?

Request you to kindly recommend solution/alternative for the above problem.

Thanks in advance,