To allow the workload cluster to continue updating.
When encountering this issue the following symptoms should be expected:
VMware vSphere 8.0 with Tanzu
VMware vSphere 7.0 with Tanzu
The virtualmachinesetresourcepolicy was deleted at some point in the past. This resource policy is used to align vSphere with Tanzu Guest Cluster objects with the vSphere Resource Pool and Cluster inventory objects. The virtualmachinesetresourcepolicy defines the ResourcePool name and Guest Cluster Folder name from vSphere in order for the VMOP pod to place virtualmachine objects in the correct location during creation.
The recommended resolution is to remove the workload cluster and redeploy it.
If you cannot remove the workload cluster and redeploy, contact GS support.