I had the same issue with a second nextcloud.log file.
The original and used config.php is located in /var/www/nextcloud/config .
If you have the file somewhere else in the nextcloud folder you could move it somewhere outside /delete it and try the update again.
Edit: you can use find . -name “config.php” in the /var/www/nextcloud folder.
I’ve got results in /config ; /apps/files_external/lib/config.php and /apps/gallery/controller/config.php
So i guess that are the valid locations for the config.php file, since my update worked with these.
In which (sub)folder is this config.php? Normally there should be only one in your_nextcloud_directory/config/ which should be accepted by the installer. Maybe you copied that once to another place as backup or something?
If this is really your used config.php in /nextcloud/config then backup it somewhere first or at least store it’s content somewhere. But without it the nextcloud web page should not load, so I guess the problematic config.php is a copy in another path ;).