VMware Cloud Director 10.6.1
In older releases prior to Cloud Director 10.6.1, the product incorrectly allowed power-on of VMs in a FLEX VDC configured with non-zero CPU/memory allocation and zero CPU/memory guarantee. This behavior was determined to be incorrect. This fault was fixed in Cloud Director 10.6.1. As a consequence, any environment which had previously been utilizing the incorrect behavior will experience this error post upgrade to 10.6.1.
This matter is documented in the Cloud Director 10.6.1 release notes as a resolved issue.
To resolve this issue reconfigure the allocation settings of the Org VDC.
With this change in 10.6.1, when CPU/Memory allocation is set to 0 and CPU/Memory resources guaranteed is also 0, then the VM power-on with set guarantee will succeed. Alternatively, if you set a specific non-zero allocation value for CPU/Memory, then then you also must specify a non-zero CPU/Memory resources guaranteed value, such as 20% for example.