Cannot complete the license assignment operation "vSphere HA" "vSphere DRS" "vCenter agent for VMware host" The Evaluation Mode license on "Host" example.com can not be changed to . To downgrade the license, first disable the following features

Products

• VMware vSphere ESXi

Issue/Introduction

• vCenter is part of Enhanced linked mode.
• Evaluation License Expired for the ESXi host.
• Attempting to add\connect a host to the vCenter after a recent upgrade fails with the error after reaching to 80%.
  •  Cannot complete the license assignment operation "vSphere HA" "vSphere DRS" "vCenter agent for VMware host" The Evaluation Mode license on "Host" example.com can not be changed to . To downgrade the license, first disable the following features
• The ESXi host tries to connect and at 80% it errors out.
• 
• Not able to apply valid license from the vSphere console.
• Not able to disable HA and we get same error.
• Applied the valid license from ESXi Web console and try to connect and gives same error..
• vpxd.log - /var/log/vmware/vpxd/vpxd.log

• yyyy-mm-ddTHH:MM:SS error vpxd[3193172] [Originator@6876 sub=Default opID=mesglq8b-9888905-auto-5vybu-h5:70831642-e8] [VpxLRO] -- ERROR task-#### -- ####-####-####-####(####-####-####-####-####) -- host-####-- vim.HostSystem.reconnect: :vim.fault.LicenseAssignmentFailed
  --> Result:
  --> (vim.fault.LicenseAssignmentFailed) {
  -->    faultCause = (vmodl.MethodFault) null,
  -->    faultMessage = (vmodl.LocalizableMessage) [
  -->       (vmodl.LocalizableMessage) {
  -->          key = "com.vmware.vim.vc.license.error.downgradeDisallowed",
  -->          arg = (vmodl.KeyAnyValue) [
  -->             (vmodl.KeyAnyValue) {
  -->                key = "entity",
  -->                value = "host-####"
  -->             },
  -->             (vmodl.KeyAnyValue) {
  -->                key = "entityType",
  -->                value = "hostEntity"
  -->             },
  -->             (vmodl.KeyAnyValue) {
  -->                key = "edition",
  -->                value = "Evaluation Mode"
  -->             },
  -->             (vmodl.KeyAnyValue) {
  -->                key = "editionKey",
  -->                value = "esxEval"
  -->             },
  -->             (vmodl.KeyAnyValue) {
  -->                key = "entityDisplayName",
  -->                value = "ESXi host name"
  -->             },
  -->             (vmodl.KeyAnyValue) {
  -->                key = "newEdition",
  -->                value = ""
  -->             },
  -->             (vmodl.KeyAnyValue) {
  -->                key = "newEditionKey",
  -->                value = ""
  -->             }
  -->          ],
  -->          message = <unset>
  -->       },
  -->       (vmodl.LocalizableMessage) {
  -->          key = "com.vmware.vim.license.features.info",
  -->          arg = (vmodl.KeyAnyValue) [
  -->             (vmodl.KeyAnyValue) {
  -->                key = "feature",
  -->                value = "esxHost"
  -->             }
  -->          ],
  -->          message = <unset>
  -->       },
  -->       (vmodl.LocalizableMessage) {
  -->          key = "com.vmware.vim.license.features.info",
  -->          arg = (vmodl.KeyAnyValue) [
  -->             (vmodl.KeyAnyValue) {
  -->                key = "feature",
  -->                value = "drs"
  -->             }
  -->          ],
  -->          message = <unset>
  -->       },
  -->       (vmodl.LocalizableMessage) {
  -->          key = "com.vmware.vim.license.features.info",
  -->          arg = (vmodl.KeyAnyValue) [
  -->             (vmodl.KeyAnyValue) {
  -->                key = "feature",
  -->                value = "das"
  -->             }
  -->          ],
  -->          message = <unset>
  -->    ],
  -->    reason = "downgradeDisallowed"
  -->    msg = "Received SOAP response fault from [<<cs p:00007f82f8002790, TCP:localhost:1080>, /ls/sdk>]: updateEntity
  --> "
  --> }
  --> Args:
  -->
  --> Arg cnxSpec:
  --> (vim.host.ConnectSpec) {
  -->    hostName = <unset>,
  -->    port = <unset>,
  -->    sslThumbprint = <unset>,
  -->    sslCertificate = <unset>,
  -->    userName = <unset>,
  -->    password = <unset>,
  -->    vmFolder = <unset>,
  -->    force = false,
  -->    vimAccountName = <unset>,
  -->    vimAccountPassword = <unset>,
  -->    managementIp = <unset>,
  -->    lockdownMode = <unset>,
  -->    hostGateway = (vim.host.GatewaySpec) null
  --> }
  --> Arg reconnectSpec:
  -->
  

Environment

VMware vSphere ESXi 8.x

Cause

• Evaluation License Expired for the ESXi host.

Resolution

• Do not perform the below steps if ESXi host is part of vSAN cluster. Engage vSAN engineer for the plan of action.
• Remove the ESXi host from the inventory and re-add it to the datacenter and can move the ESXi host to the cluster.
  
  • Ref to Remove the ESXi Host: How to Remove an ESXi Host from Your vCenter Server Instance
  • To add ESXi host back to vCenter
    • Log in to the vSphere Client, navigate to the datacenter or cluster, right-click it, and select "Add Host" or go to "File > New > Add Host"

Additional Information

If its vSAN cluster. Ref : https://knowledge.broadcom.com/external/article/317830 (Engage vSAN Engineer to perform this steps)

1: In SSH on both hosts turn on this setting.

• esxcfg-advcfg -s 1 /VSAN/IgnoreClusterMemberListUpdates

2: Disconnect host first before removing from inventory (this way it doesn't try to leave the vSAN cluster).
3: Remove from inventory.

*Once hosts are back in, revert the setting from step 1

• esxcfg-advcfg -s 0 /VSAN/IgnoreClusterMemberListUpdates