Review of the collector logs reveals a failure during the CSP (Cloud Services Provider) authentication handshake.
Log Snippet:
YYYY-MM-DDTHH:MM:SSZ WARN collector 7668 [ops@4413 threadId="59701" threadName="TasksManager-TaskHandler-576"] [com.vmware.vrops.adapter.vmc.auth.CspAuthenticationManager.warn] - Exception occurred while connecting to url console.cloud.vmware.com/csp/gateway/am/api/auth/api-tokens/authorize
com.vmware.vrops.adapter.vmc.util.VmcException: Bad request please verify the request parameters to check proxy details
The underlying cause of this error is NSX Firewall rules on the VMC SDDC side.
Even if proxy settings in VCF Operations are correct, if the outbound traffic to the VMware Cloud Services URL (console.cloud.vmware.com) is blocked or intercepted by the VMC Gateway Firewall (GFW), the API call returns a 400-series error which the adapter interprets as a parameter or proxy mismatch.