VMware Tools is a product that runs on ESXi hosts and VM's within a vSphere environment. Normally, VMware Tools is updated per VM.
Alternatively, you can update VMware Tools on all hosts in a cluster. This will cascade the updates from hosts to VM's running on the hosts.
ESXi 7.x
ESXi 8.x
vCenter Server 7.x
vCenter Server 8.x
Steps to update VMware Tools for whole clusters: