/var/run/log/hostd.log file of the source ESXi host indicate that the NFC connection to the destination host failed:info hostd[PID] [Originator@6876 sub=Libs opID=########-#####-auto-####-h5:########-##-##-###### user=vpxuser:REDACTED_DOMAIN\REDACTED_USER] Cnx_Connect: Error message: Failed to connect to server #.#.#.#:902warning hostd[PID] [Originator@6876 sub=Libs opID=########-#####-auto-####-h5:########-##-##-###### user=vpxuser:REDACTED_DOMAIN\REDACTED_USER] [NFC ERROR] NfcNewAuthdConnectionEx: Failed to connect: Failed to connect to server #.#.#.#:902warning hostd[PID] [Originator@6876 sub=Libs opID=########-#####-auto-####-h5:########-##-##-###### user=vpxuser:REDACTED_DOMAIN\REDACTED_USER] [NFC ERROR] NfcNewAuthdConnectionEx: Failed to connect to peer. Error: Failed to connect to server #.#.#.#:902warning hostd[PID] [Originator@6876 sub=Libs opID=########-#####-auto-####-h5:########-##-##-###### user=vpxuser:REDACTED_DOMAIN\REDACTED_USER] [NFC ERROR] NfcEstablishAuthCnxToServer: Failed to create new AuthD connection: Failed to connect to server #.#.#.#:902warning hostd[PID] [Originator@6876 sub=Libs opID=########-#####-auto-####-h5:########-##-##-###### user=vpxuser:REDACTED_DOMAIN\REDACTED_USER] [NFC ERROR] Nfc_BindAndEstablishAuthdCnx3: Failed to create a connection with server #.#.#.#:902 Failed to connect to server #.#.#.#:902error hostd[PID] [Originator@6876 sub=NfcManager opID=########-#####-auto-####-h5:########-##-##-###### user=vpxuser:REDACTED_DOMAIN\REDACTED_USER] Unable to connect to NFC server: Failed to connect to server #.#.#.#:902
nc -vz <HostIPAddress> 902This issue may also be exhibited while deploying VMs from templates.