Unable to assign tags after splitting vCenter Servers Enhanced Linked mode

Products

• VMware vCenter Server

Issue/Introduction

• After splitting vCenter Servers Enhanced Linked mode, you are unable to assign tags even with Administrator account.
• Assigning tag throws the following error:

(vmodl.fault.SecurityError) {
  faultCause = null,
  faultMessage = null
}

• In vpxd.log file, you can see lines similar to:

<timestamp>  info vpxd[06943] [Originator@6876 sub=AuthorizeManager opID=53048404] [Auth]: User VSPHERE.LOCAL\vpxd-extension-xxxxxxxx-xxxx-xxxx-xxxx-xxxxxxxxxxxx

<timestamp> ERROR lro-7244188 -- 52b09833-460e-867f-81b7-aca2faf85ea4 -- SessionManager -- vim.SessionManager.loginByToken: :vim.fault.NoPermission
--> Result:
--> (vim.fault.NoPermission) {
-->    faultCause = (vmodl.MethodFault) null,
-->    faultMessage = <unset>,
-->    object = 'vim.Folder:xxxxxx:group-d1',
-->    privilegeId = "System.View",
-->    missingPrivileges = (vim.fault.NoPermission.EntityPrivileges) [
-->       (vim.fault.NoPermission.EntityPrivileges) {
-->          entity = 'vim.Folder:xxxxxx:group-d1',
-->          privilegeIds = (string) [
-->             "System.View"

Environment

vCenter Server 8.x

Cause

vpxd-extension-xxxxxxxx-xxxx-xxxx-xxxx-xxxxxxxxxxxx account does not have required permissions on vCenter object (group-d1)

Resolution

In vSphere Client/Administration/Global Permissions , verify that vpxd-extension-xxxxxxxx-xxxx-xxxx-xxxx-xxxxxxxxxxxx account has Administrator role with  Propagate to children option.