The 10.15.7.dmg is an update for macOS Catalina, you need to be already running a version of macOS Catalina
before that will install.
If you want to upgrade your mac to a newer OS you need to download the full installer app from the App Store.
Open your Safari browser and click on this link,
How to get old versions of macOS – Apple Support (UK)
Go to Check Compatibility to see if your mac qualifies for the OS upgrade you want.
Then go to the Download OS section and click on the OS you want to install.
This will redirect you to the App Store Catalina download page, it should say
Get or Download. This will download Install macOS Catalina.app to your Applications
folder, it is 8.26GBs in size.
As you want to upgrade from macOS Sierra to Catalina I would recommend to upgrade to
macOS High Sierra first.
Before upgrading make a full back up of your Mac.
Check that third party apps you use have updates available for the new OS.
https://roaringapps.com
Check that your printers/ scanners etc have updated drivers and software available for the new OS.
Connect your mac to your router via cable rather than rely on WiFi.
Do not use your mac while it is downloading
and do not use any other devices that share the same internet connection.
If the App Store says ‘Open’ then it is detecting a previous download of the install app
go to the Applications folder locate Install macOS ******.app.
Move it to the Trash, empty the Trash.
Restart, click on the link again, the App Store should say ‘Get' or 'Download'.
If you are considering upgrading to Catalina or be warned it does not support 32bit apps.
Your Mac is probably running 32bit apps and these will need to be updated to 64bit apps,
some updates may be free, some may be paid. Use this app to discover which apps you have
are 32bit, https://www.stclairsoft.com/Go64/ then contact the developers of the software to see
if they are offering 64bit updates.