You will probably get a better answer on the
askfedora forum. They are almost exclusively focused on fedora there.
With that said, you might use the grub menu and by editing the linux command line in grub be able to boot to single user mode, verify that you are actually at release 35, then do the updates.
I know that fedora by default hides the grub menu during boot.
If the grub menu is hidden during boot you can, by giving the VM window focus before you power it on, hold down the shift key during boot and it should display the grub boot menu so you can select the entry and choose to edit the grub entry before boot.