HCX Service mesh upgrade or fleet appliance redeployment fails with following error, "Insufficient capacity on each physical CPU"

Products

• VMware HCX

Issue/Introduction

• Following are symptoms observed under HCX manager logs, /common/logs/admin/app.log

<Timestamp> [InterconnectService_SvcThread-43618] ERROR c.v.v.h.s.i.UpdateApplianceReservation-  Updating appliance reservation failed for user <username>. Reason: Insufficient capacity on each physical CPU. id : host-<host-ID> Caused by: com.vmware.vim.binding.vim.fault.InsufficientPerCpuCapacity: Insufficient capacity on each physical CPU.

• CPU and Memory reservation was configured as 100 in the compute profile.
  

Environment

VMware HCX

Cause

Insufficient cluster CPU capacity. The requested resource reservation exceeded the available physical CPU and memory overhead currently provisioned in the environment.

Resolution

 To resolve the issue, we followed the below.

• Follow this article to change CPU and memory reservations to 0 and save the updated compute profile.
• Perform service mesh resync.