Unable to apply license to the host when NSX license provides DVS capability.

Products

• VMware
• VMware NSX
• VMware vCenter Server
• VMware vSphere ESXi

Issue/Introduction

Symptoms:

Using NSX for vSphere and the NSX license allows for Distributed Virtual Switch capabilities.

You have already connected your host to a DVS, provided by the NSX license.

When trying to apply a Standard license to a host, you receive an error similar to the following: "Host does not have valid license for vds"

Environment

VMware Update Manager 6.0
VMware NSX for vSphere 6.2.x
VMware vCenter Converter Standalone 6.x
VMware vSphere ESXi 6.0
VMware vCenter Server 6.0.x
VMware NSX for vSphere 6.3.x
VMware vCenter Server Appliance 6.0.x

Resolution

The issue is with the order in which the license was applied.

To workaround this issue, you need to remove the host from the DVS connectivity first. Then, apply the license to the host.

Once the license is applied, you can re-connect the host to the existing DVS.