A direct clone of a VM is successful.
A manual deployment of a VM is successful.
The issue is only happening when the Cluster API is used to do a combination VM clone and configure operation.
When the vpxd service crashes, a core dump file (example - core.vpxd-worker.xxxxxxx) is created in /var/core/ on the vCenter.
vSphere 8.0U3
The combination VM clone and configure operation is causing the vpxd service to crash.
Isolate the Cluster API operations:
1. Do a simple clone operation (no changes to the VM device/disk properties)
2. Once the step 1 simple clone completes, perform the configuration changes on the cloned VM.