To solve the issue perform the steps given below:
1. Disable auto update of vmtools in virtual machine settings.
- In the Host or vCenter UI, select the VM
- Right click Edit settings
- Select VM Options tab
- Expand VMware Tools
- Next to Tools Upgrades, ensure box is unchecked next to "Check and upgrade Vmware Tools before each power on"
2. Reboot the Virtual Machine.
3. Log on via console session.
4. Delete the install log for tools.
5. Initiate a vmtools upgrade using interactive method.
6. Complete the tools upgrade via console session.