Creation of VM's as well as importing VM's in vCD fails with error " Reconfiguration of vmGroups: [Default] timed out for cluster"
Creation of VM works fine in vCenter Server
vCloud Director 10.5.1
The cause here is due to, stale entry within the vCenter.
Here is the insight towards the same :
"VM group in vCenter already contains the VM that we're trying to create from vCD, but the same doesn't exist in VCD vm_inv table.
Because of this, VCD's vc listener is not able to process any other VM groups in the list hence resulting in VM creation failure."
Since VCD is not able to detect the vmgroup 'Default' and vCenter inventory update related to vmgroup is not reaching VCD , a reconnect of vcenter to VCD should fix the issue.