VMware Tools Upgrade Fails with Error 1603 in Windows Guest Operating System due to insufficient user privilege

Products

• VMware vSphere ESXi

Issue/Introduction

• Attempting to upgrade VMware Tools on a Windows virtual machine (VM), the process may fail with the following error message:
  Error 1603: A fatal error occurred during installation
  
  
• Accessing the tools installation  directory may result in a "Permission Denied" error
  
  
  
  
• %temp%\vminst.log file, it may report entries such as:
  Error 1603: A fatal error occurred during installation

Cause

This error is triggered if a user lacks the necessary permissions to perform a VMware Tools installation or upgrade on the Windows Guest OS.

Resolution

To resolve this issue, follow either of the solutions below on the affected VM:

Solution 1: Run the Installer as Administrator

• Navigate to the VMtool installation media/folder
• Right-click setup.exe and select Run as administrator to initiate the installation with elevated privileges.
  
  

Solution 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

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