To resolve this issue, either create the directory for the scratch according to the scratch config settings in advanced settings of the host or set the scratch location to a valid location and then reboot the host.
Sample commands to set up SNMP via esxcli
esxcli system snmp set -r
esxcli system snmp set -e false
esxcli system snmp set --communities public
esxcli system snmp set --targets 10.0.3.100@162/public
esxcli system snmp set -l debug
esxcli system snmp set -e true
snmpd start
esxcli system snmp test