Symptoms:
When upgrading or installing vCenter Server with a local user account in the Hostname\Username format, you experience these symptoms:
YYYY-MM-DD HH:MM:SS| vcsInstUtil-4602587| I: ParseStatusFile: curr error msg: "The installation of vCenter Server failed due to an internal error."
YYYY-MM-DD HH:MM:SS| vcsInstUtil-4602587| E: ParseStatusFile: Displaying error message for "VMware vCenter Server": "The installation of vCenter Server failed due to an internal error.
YYYY-MM-DD HH:MM:SS| vthread-5| I125: Run as User for service vpxd-svcs changed to Username@Hostname
YYYY-MM-DD HH:MM:SS| vthread-5| I125: Received start for vpxd-svcs
YYYY-MM-DD HH:MM:SS| vthread-5| I125: Load runstate service vpxd-svcs.json
YYYY-MM-DD HH:MM:SS| vthread-5| I125: Constructed command : "C:\Program Files\VMware\vCenter Server/visl-integration/usr/sbin/cloudvm-ram-size.bat" -J vmware-vpxd-svcs -O C:\ProgramData\VMware\vCenterServer\data/vmware-vmon/vpxd-svcs.start.cmd
YYYY-MM-DD HH:MM:SS| vthread-5| I125: Setting working dir of process to C:\Program Files\VMware\vCenter Server/vpxd-svcs/wrapper/bin.
YYYY-MM-DD HH:MM:SS| vthread-5| E110: Failed to Logon as Username@Hostname user. Error: The user name or password is incorrect
YYYY-MM-DD HH:MM:SS| vthread-5| E110: Service vpxd-svcs pre-start command could not started.
VMware vCenter Server 6.5.x
This issue occurs when the vpxd service 'logon as user' uses an account with a hostname\username format.
In vCenter Server service, the vmon component uses User Principal Name (UPN) format to store the username. UPN is valid for any username@domainname domain account.
When using a user in hostname\username format that is converted to username@hostname, the UPN is not valid and causes the service to fail.
To resolve this issue, use only the username or .\username for the user account when you are installing or upgrading vCenter Server.