A 3rd party KMS server is either flapping between Connected and Retrieving or never connects.
vCenter Server
This can be caused by network issues, expired certificates, or a duplicate KMS entry using the same FQDN and an expired certificate.
Checking network connectivity, you can use curl to validate dns/ip/port access:
root@vc7 [ ~ ]# curl -v telnet://kms.server.com:5696
* Connected to kms.server.com:5696 port 5696 (#0)
If it fails to connect you have a network issue.
Check the vpxd logs on vCenter searching for the url or IP address of the KMS server for an expired certificate:
2025-08-08T12:23:28.740Z error vpxd[06529] [Originator@6876 sub=CryptoManagerKmipWrapper opID=SWI-747fd464] The certificate is expired
2025-08-08T12:23:28.815Z error vpxd[06529] [Originator@6876 sub=CryptoManagerKmipWrapper opID=SWI-747fd464] Failed to connect to key server <FQDN or IP Here>:5696 - Err:QLC_ERR_NEED_AUTH Failed to establish the connection, authorisation needed
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If a curl command is unable to connect perform network troubleshooting.
If the issue is an expired certificate check to be sure there isn't a duplicate KMS entry, and remove it. If there are no duplicates use the following KB to remove expired certificates:
Expired KMS server certificate will not be automatically removed from vecs store