This is expected behavior when this advanced configuration is set to "TRUE". Both Automatic and Interactive tools upgrades will fail.
Per the vSphere 6.5 Security Configuration Guide, this advanced configuration is no longer required in vSphere 6.5. Check the
vSphere 6.5 Security Configuration Guide for more details.
To disable this setting:
Edit the vmx file of the VM:
- Power down the affected VM
- Connect to the host the VM is running on via SSH
- Find the vmx file of the VM using the below command:
find /vmfs/volumes -iname *.vmx
- open the vmx file in your preferred editor and remove the entry below:
isolation.tools.autoInstall.disable = "TRUE"
Use the vSphere Client:
- Power down the affected VM
- Right click the affected VM and select Edit Settings...
- Select VM Options
- Expand Advanced > Configuration Parameters
- Select EDIT CONFIGURATION...
- Set the value of key isolation.tools.autoInstall.disable to FALSE
- Select Ok