Error: 1603 VMware Tools upgrade fails due to insufficient permissions or security software.

Products

• VMware vSphere ESXi

Issue/Introduction

VMware Tools upgrade or installation on a Windows virtual machine terminates unexpectedly. The installer UI may disappear without a visible error message during execution. This behavior is typically observed when security agents or restricted permissions block the installer from writing to the local cache or temporary directories.

• VMware tools installation fails with "Error 1603"
  
  
• The installer UI launches but disappears momentarily.
  
  
• Log files  vminst.log or vmmsi.log  generated in C:\Users\<User Name>\AppData\Local\Temp (%Temp%)  reports winerror code 5 (Access is denied) or Error 1723.
  
  
• vminst.log shows: Util_CopyFile: The file copy operation failed| winerror code 5 (Access is denied.)
  
  
• Accessing C:\ProgramData\VMware or C:\Program Files\Common or Files\VMware\VMwareToolsInstallerCache results in a "Permission Denied" error.


• The process fails with error:
  Error 1723. There is a problem with this Windows Installer package. A DLL required for this install to complete could not be run. Contact your support personnel or package vendor. Action VM_LogStart, entry: VMLogStart, library: C:\Users\ADMINI~1\AppData\Local\Temp\1\#######.tmp

Environment

• ESXi 8.x
• ESX 9.x

Cause

Insufficient Access Control Lists (ACLs) or interference from third-party security software prevent the installer from generating required structures or writing payload data to the local cache, specifically within C:\ProgramData\VMware

Resolution

To resolve this issue, follow either of the options below on the affected virtual machine:

1. Run the Installer as Administrator
   
   • Navigate to the VMware tools installation media/folder
   • Right-click setup.exe and select Run as administrator to initiate the installation with elevated privileges.

1.  
2.  Verify and Grant Folder Permissions (Ensure the user performing the installation has Administrative permissions for the following directories):
   • <Installation Drive>\Installation Directory\VMware\VMware Tools
   • <Installation Drive>\Program Data\VMware
     
     
   • To verify and modify permissions:
     
     1. Right-click the folder → Properties → Security tab
     2. Click Edit → Add or select the appropriate user
     3. Grant Full Control permissions
     4. Click Apply and OK
        
        
3.  PowerShell command to reset SDDL/ACL permissions

• • Log in with the domain account and run the following PowerShell command to allow full control to the account:
    $acl = New-Object -TypeName System.Security.AccessControl.DirectorySecurity;$acl.SetSecurityDescriptorSddlForm("O:BAG:SYD:PAI(A;OICIID;FA;;;SY)(A;OICIID;FA;;;BA)(A;OICIIOID;GA;;;CO)(A;OICIID;0x1200a9;;;BU)(A;CIID;DCLCRPCR;;;BU)");Set-Acl -Path C:\ProgramData\VMware\logs -AclObject $acl;Get-Acl -Path C:\ProgramData\VMware\logs | Format-List
    
    
  • The output should be similar to:

Path : Microsoft.PowerShell.Core\FileSystem::C:\ProgramData\VMware\logs
Owner : BUILTIN\Administrators
Group : NT AUTHORITY\SYSTEM
Access : NT AUTHORITY\SYSTEM Allow FullControl
BUILTIN\Administrators Allow FullControl
CREATOR OWNER Allow #########
BUILTIN\Users Allow ReadAndExecute, Synchronize
BUILTIN\Users Allow Write

• • If the PowerShell command does not work, proceed with Option 2.

After applying these changes, retry the VMware Tools installation or upgrade.

Additional Information

Installation Logs When VMware Tools is Automatically Upgraded on Windows OS