VMware Tools upgrade reverted Windows Server 2016 Static IP settings to DHCP

Products

• VMware vSphere ESXi

Issue/Introduction

After upgrading VMware Tools on Windows Server 2016 VMs, the static IP configuration reverted to DHCP

Issue occurred when upgrading vmware tools from  12.3.5 to 12.5.1

Environment

vSphere ESXi 8.x

Cause

The issue occurs when the VMware Tools upgrade process performs an uninstall + new install instead of an in-place upgrade.

• During VMware Tools uninstall, the VMXNet3 network driver is removed.

• This leads Windows to delete the corresponding NIC device.

• When Tools installs the new VMXNet3 driver, Windows detects it as a new network adapter.

• As a result, Windows assigns a default DHCP configuration, overwriting the previous static IP.

Resolution

Ensure VMware Tools upgrade runs as an in-place upgrade, not uninstall + install.

Note:

1. Avoid forcibly uninstalling older Tools versions unless necessary.

2. Validate that the VMXNet3 driver is not removed during upgrade checkpoints.

Additional Information

This issue might impact only certain servers based on the below conditions:

• Impacted VMs: Tools 12.3.5 was completely uninstalled, VMXNet3 NIC was removed → static IP lost.

• Unaffected VMs: Tools performed an in-place upgrade, the NIC was never removed → static IP preserved.