VMware Tools installation fails with error "Setup failed to install the VMCI Virtual Machine Communication driver automatically" resulting in loss of IP address configuration

Products

• VMware vSphere ESXi

Issue/Introduction

• Setup Wizard reports the following error:
  
  "Setup failed to install the VMCI Virtual Machine Communication driver automatically. This driver will have to be installed manually"
  
  
  
  
  
• After the installation is completed the IP configuration on the Guest network adapter is lost.
• During the installation attempt Guest Logs report the an error similar to the following:
  
  vminst.log
yyyy-mm-ddThh:mm:ss.Z| tools-build-xxxxxxxx| I1: PnpDriverManager::InstallPnPDevices: Attempting to install HID0: PCI\VEN_xxAD&DEV_xxxx&SUBSYS_xxxxxxAD
yyyy-mm-ddThh:mm:ss.Z| tools-build-xxxxxxxx| I1: PnpDriverManager::InstallPnPDevices: UpdateDriverForPlugAndPlayDevicesW on ID0 (PCI\VEN_xxAD&DEV_xxxx&SUBSYS_xxxxxxAD) failed| 
HRESULT code 0x800f0248 (The installation of this device is forbidden by system policy. Contact your system administrator.)
yyyy-mm-ddThh:mm:ss.Z| tools-build-xxxxxxxx| I1: PnpDriverManager::InstallPnPDevices: Attempting to install HID1: PCI\VEN_xxAD&DEV_xxxx
yyyy-mm-ddThh:mm:ss.Z| tools-build-xxxxxxxx| I1: PnpDriverManager::InstallPnPDevices: UpdateDriverForPlugAndPlayDevicesW on ID1 (PCI\VEN_xxAD&DEV_xxxx) failed| 
HRESULT code 0x800f0248 (The installation of this device is forbidden by system policy. Contact your system administrator.)
yyyy-mm-ddThh:mm:ss.Z| tools-build-xxxxxxxx| I1: DriverMgmt_CreateNonPnpDevice: Created device with instance ID ROOT\VMWVMCIHOSTDEV\0000
yyyy-mm-ddThh:mm:ss.Z| tools-build-xxxxxxxx| I1: PnpDriverManager::InstallRootDevice: Created VMWVMCIHOSTDEV device: ROOT\VMWVMCIHOSTDEV\0000
yyyy-mm-ddThh:mm:ss.Z| tools-build-xxxxxxxx| I1: PnpDriverManager::InstallRootDevice: Set VMWVMCIHOSTDEV driver registry key
yyyy-mm-ddThh:mm:ss.Z| tools-build-xxxxxxxx| I1: PnpDriverManager::InstallPnPDevices: Attempting to install HID2: ROOT\VMWVMCIHOSTDEV
yyyy-mm-ddThh:mm:ss.Z| tools-build-xxxxxxxx| I1: PnpDriverManager::InstallPnPDevices: UpdateDriverForPlugAndPlayDevicesW on ID2 (ROOT\VMWVMCIHOSTDEV) failed| 
HRESULT code 0x800f0248 (The installation of this device is forbidden by system policy. Contact your system administrator.)
yyyy-mm-ddThh:mm:ss.Z| tools-build-xxxxxxxx| E1: PnpDriverManager::InstallPnPDevices: Failed to install vmci driver| winerror code 3758096968
yyyy-mm-ddThh:mm:ss.Z| tools-build-xxxxxxxx| I1: DriverInstallerInfo::SetMsiInstallerPresent: Set Msi installer: present
yyyy-mm-ddThh:mm:ss.Z| tools-build-xxxxxxxx| I0: MessageBox( 70258, "Setup failed to install the VMCI Virtual Machine Communication Interface driver automatically.  
This driver will have to be installed manually.", "VMware Tools Installation", 48)

setupapi.dev.log

!!!  pol:                     The device is explicitly restricted by the following policy settings:
!!!  pol:                     [-] Restricted installation of devices not described by policy
!!!  pol:                {Device installation policy check [PCI\VEN_xxAD&DEV_xxxx&SUBSYS_xxxxxxAD&REV_xx\x&xxxxxxxx&0&xx] exit(0xe0000248)}
!!!  ndv:                Installation of device is blocked by policy!
!    ndv:                Queueing up error report since device installation failed...
     ndv:           {Install Device - exit(0xe0000248)} xx:xx:xx.xxx
     ndv:      {Core Device Install - exit(0xe0000248)} xx:xx:xx.xxx
     ump: {Plug and Play Service: Device Install exit(e0000248)}
!!!  ndv: Device install failed for device.
!!!  ndv: Error 0xe0000248: The installation of this device is forbidden by system policy. Contact your system administrator.
     ndv: {Update Device Driver - exit(e0000248)}
!!!  ndv: Failed to install device instance 'PCI\VEN_xxAD&DEV_xxxx&SUBSYS_xxxxxxAD&REV_xx\x&xxxxxxxx&0&xx'. Error = 0xe0000248
<<<  Section end xxxx/xx/xx xx:xx:xx.xxx
<<<  [Exit status: FAILURE(0xe0000248)]
  
  

Environment

Vmware vSphere ESXi 7.x
Vmware vSphere ESXi 8.x

Cause

This failure is triggered by Windows system policies that block driver installations—most commonly due to Group Policy restrictions resulting in VMware Tools installation halt.

Resolution

Engage the 3rd party OS vendor to investigate the Guest configuration.

As a workaround to regain network access use a console connection to access the Guest OS, reconfigure the NIC adapter settings and reboot the VM.