I have a Polisy with a Zooz 700 version 5.9.1 that is working fine. I have not upgraded to ver 6.0.0 as I don't know how to migrate the Zooz 700. Step one is backup your Z-wave. I have read a lot about it here, but few have the Zooz 700. I can't back up the Zooz 700 as the option is not available. This could all be behind me now. I also have an Eisy with a Zmatter dongle. My ultimate goal is to move to the Eisy with Zmatter. So I am thinking that if I can factory reset my used Zmatter dongle using the Eisy then I can do a Zmatter upgrade on the Polisy with the Zmatter I just reset. After that, the upgrade should be pretty straight forward. This is my step 1.

To answer your first question, upgrading the Polisy to 6.0.4 isn't a migration if you're just keeping the Zooz stick on it. It's just a straight IoX version upgrade. As you'll see in my own thread I started yesterday about migrating from Zooz to ZMatter, there is no zwave backup option when you have the Zooz dongle. That option only appears with the ZMatter dongle. The migration involves clicking on the button you highlighted in your post above, which will have you create a migration backup. This is similar to how you migrate from a ISY994i to a eisy.

Your ultimate migration to ZMatter could either be done on the eisy or the Polisy. I'd probably do it on the eisy. The process is explained here:

https://wiki.universal-devices.com/index.php?title=Eisy:User_Guide#Migration

It's confusing to read because it covers several different migrations (from ISY994i, Polisy, eisy -> ZMatter).

I haven't had much luck with my migration.

@Guy Lavoie Thanks, that is just the encouragement I was looking for. LOL, Since I have two setups eisy and Polisy, I am thinking of doing the migration from Policy with Zooz 700 and serial PLM to eisy with Zmatter and USB PLM using the wiki link above. Make my backup file on Polisy. Restore eisy from my backup. In theory it should work. I just don't want to get suck in the middle.

Well, I got stuck in the middle. It all went fast and well until I restored the PLM, as I was using a new PLM on the eisy. Actually the restore PLM part went Okay. I just have a lot of battery devices. The list was crazy long. The battery devices would have to be reset one at a time. Zwave appears to have migrated too. I was out of time. I disconnected the eisy and fired up the Policty. It turns out I had broken most all the links on my connected modules. So I had to restore, write and test every module.

I am going to try this again using the UD serial to USB cable. This way I won't have to mess with PLM. I just have to physically move it.

So your Zooz to ZMatter migration worked ok? Please confirm. I'm trying to learn from this. Mine didn't, and I needed to add back each device manually (exclude or reset, then add). Thankfully I only have about a dozen zwave devices, none of which are wall switches. But for a few of the locks, I needed to remove them from the door and bring them closer to the ZMatter dongle to properly add them. These are Weiser locks. Do you have any zwave locks? I'm thinking that their greater number of features and nodes might have been a factor.

To make reconfiguring devices easier, I had the restored migration backup running on a test controller (Polisy) and my actual setup with the new dongle on my eisy, and ran two admin console sessions running side by side on two monitors, so I could easily see what the old device names were, and search the programs where they were referenced. I'd then replicate that on the eisy.

For your Insteon migration, keeping the same PLM makes things a lot easier! I also have a bunch of battery powered devices (leak sensors and open/close sensors) and wouldn't want to redo each one.