3165540 - XSA update fails with error - Client side timeout reached while waiting for app instances to be running

HANA XSA update fails with error:

Updating the XXXXXXX application failed: Client side timeout reached while waiting for app instances to be running.

and/or

XSA diagnose command indicates peformance issue:

Checking file system write performance: FAILED
        Thread count   Dir. Count   File Count   Package Size   Throughput   Write Performance
        --------------------------------------------------------------------------------------
        4              4000         24000        398.44 MB      4.19 MB/s    SLOW
----------------------------------------------------------------------------------------------
The file system is too slow for XSA to work properly.

XSA update, Client side timeout reached, XSA diagnose, SLOW, Checking file system write performance: FAILED, The file system is too slow for XSA to work properly , KBA , BC-XS-RT , XS Advanced Runtime / XS Controller , Problem