Error: "The selected VM template is tagged with "System Default" policy that is not valid for this VDC. Please select a different policy" occurs when editing a VM

Products

• VMware Cloud Director

Issue/Introduction

• When the client tries to modify the resources of the vm the following error appears.  "The selected VM template is tagged with "System Default" policy that is not valid for this VDC. Please select a different policy".
• Trying to modify the policy the following error appears. "You need to select either sizing or placement compute policy".
  
  

Environment

VMware Cloud Director 10.5.1.1

Cause

This issue will occur if the VM is linked to a compute policy which is not associated to the OrgVDC where the VM resides.

Resolution

To resolve this issue, please open a Support Request with VMware Technical Support and reference this KB article 399284.

Additional Information

This KB is applicable to already deployed VMs which encounter the error during an edit attempt. 

If you experience this error during a new deployment attempt from a vApp template, then refer to the following KB as it's more applicable: 

You need to select either sizing and placement compute policy error encountered when attempting to deploy a vApp from a catalog template in VMware Cloud Director