This issue occurs when an incorrect NVIDIA VIB loaded onto the ESXi host. NVIDIA has two graphics packages available for shared graphics environments and one is specific to vGPU.
To resolve this issue, uninstall the existing vib from the ESXi host and install the correct vgx vib for vGPU support that is available on the NVIDIA website.
For more information, see the NVIDIA GRID VGPU Development Guide deployment guide.