VMware Tools upgrade prompts for interactive reboot on VM and does not upgrade. Once the VM is rebooted, the VMware Tools version remains the same.
When the VMware Tools upgrade is ran a second time after the the VM is rebooted, VMware Tools upgrades successfully
vCenter Server 7.x
vCenter Server 8.x
ESXi 7.x
ESXi 8.x
The Microsoft Visual C++ Redistributable version on the VM is lower than what is required by the VMware Tools version being installed
For more information on versions see, Microsoft Visual C++ Redistributable Requirement for VMware Tools
When checking the C:\Windows\Temp\vminst.log from the guest we see the below at the first upgrade attempt of VMware Tools** InstallVCRedist [vcredist_x64.exe][ /Q /norestart]Util_FileExists: Found "C:\Windows\TEMP\{####-####-####-####-####}~setup\vcredist_x64.exe"Util_Launch: Attempting to launch ""C:\Windows\TEMP\{####-####-####-####-####}~setup\vcredist_x64.exe" /Q /norestart"Util_Launch: Child exited with code 3010Util_Launch: Process returned 3010vc redist returned ERROR_SUCCESS_REBOOT_REQUIREDwWinMain: Incrementing progress by 5.Sending rpc command 'log Reboot required by VC Redist' to the hostReboot required by VC Redist installation. Setting return code to ERROR_SUCCESS_REBOOT_REQUIREDReboot required by [VC Redist], prompting user
After the interactive reboot prompt on the vm has been triggered, the next upgrade attempt of VMware Tools will complete successfully as the minimum required version of the Microsoft Visual C++ Redistributable is now installed on the guest.
Per KB Microsoft Visual C++ Redistributable Requirement for VMware Tools, "It is recommended to always keep Microsoft Visual C++ 2015-2022 Redistributable updated with the latest version available from Microsoft." "This helps reduce the likelihood of system reboot during VMware Tools upgrade"