HCX - Service Mesh creation failed because of a permission error, preventing the deployment of the IX/NE appliance on the vSAN encryption datastore.

Products

• VMware HCX

Issue/Introduction

• vSAN encryption is used for the Default Storage Policies
• The following error is observed in /common/logs/admin/app.log:
  <Time Stamp> [InterconnectService_SvcThread-584, IX:fa510a3-####-####-####-############, J:36535fb5, , TxId: 09b9616c-####-####-####-############] ERROR c.v.v.h.s.i.DeployAppliance- Task task-2954705 errored out, error : Permission to perform this operation was denied.
• The error is displayed on the HCX UI -> Interconnect -> More -> Tasks:
  
• The error is displayed on the vCenter UI Monitor --> Tasks 
  

Cause

The session that HCX uses is removed during relocation thus preventing an powering on the HCX Fleet VM's.

Resolution

This is a known issue impacting VMware HCX

Workaround : 

Option 1:

Temporarily change the vSAN encryption policy to the Default Storage Policy

Option 2:

Provision the HCX Fleet appliances onto a datastore that does not have a vSAN encryption policy associated with it.