As discussed in the support ticket I modified the template and installed it and it ran successfully.
Can you please consider placing the template under
~/App_Data/Sitefinity/WebsiteTemplates/YourTemplate/App_Master/yourtemplate.master as described in documentation. This way the template will not get modified by the upgrade procedure. When the template is in App_Master folder i will not need to Inherits="Sitefinity.Web.App" as if it was cretead in the root of the project. Also the tag prefixes you registered "ess, uss" were not available at my end so I removed them.
<%@ Register TagPrefix="uc" TagName="nav" Src="~/Modules/Navigation.ascx" %>
<%@ Register TagPrefix="ess" Namespace="LanguageList" Assembly="LanguageList" %>
are referencing not Sitefinity assembly and may provide error. Please test at your end where you have the whole project.
the Telerik team
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