This issue occurs if there is a syntax error in the vpxd.cfg file. This is indicated by the exception error:
Failed reading C:\ProgramData\VMware\VMware VirtualCenter\vpxd.cfg. Line <line_number>. class Vmacore::Xml::XMLParseException(not well-formed (invalid token))
Where <line_number> is the line that has a syntax error. For example, the sample log in the Symptoms section indicates that there is a syntax error in Line 24.