Error: "License assignment failed for this host" during host upgrade or after reboot in VCF 9.1

Products

• VMware vCenter Server
• VMware vSphere ESXi
• VCF Operations
• VMware Cloud Foundation

Issue/Introduction

• After upgrading ESXi hosts to version 9.1, or after a host reboot, the vSphere Client displays a warning banner: License assignment failed for this host.
  
  
  
  
• The event type ID com.vmware.license.HostRejectedLicenseEvent is triggered in vCenter.
  
  
• The successful assignment of the license was also verified in the UI by navigating to VCF Operations > Manage > License and registration > [vCenter name] > ESXi host tab, and filtering for the specific <ESXi_host_name>
  
  
• The following error sequence is observed in vCenter - /var/log/vmware/vpxd/vpxd.log and /var/log/vmware/cis-license/license.log:
  

  INFO vpxd #### [vc@#### sub="licenseClient" opID="HeartbeatStartHandler-########-########"] Assign license to host: ''
WARNING vpxd #### [vc@#### sub="licenseClient" opID="HeartbeatStartHandler-########-########"] Failed request to VAPI service; Error: --> com.vmware.vapi.std.errors.invalid_argument --> Messages: --> com.vmware.esx.licensing.entitlements.invalid_or_malformed_token
ERROR vpxd #### [vc@#### sub="licenseClient" opID="HeartbeatStartHandler-########-########"] License was unsuccessfully set on host: with error: Error: --> com.vmware.vapi.std.errors.invalid_argument --> Messages: --> com.vmware.esx.licensing.entitlements.invalid_or_malformed_token

Environment

• VMware Cloud Foundation (VCF) 9.1
• VMware vCenter Server 9.1
• VMware ESX 9.1
• VMware Cloud Foundation Operations 9.1 

Cause

During an ESXi host upgrade or reboot in version 9.1, a timing sequence mismatch occurs where vCenter Server initially attempts to push a legacy 9.0 formatted license payload while host services (VAPI provider) are still initializing. The 9.1 host rejects the legacy token due to new cryptographic signature requirements enforced by the 9.1 License Server.

Resolution

A permanent fix for this issue is planned for a future release.

Workaround:

To work around this issue in the meantime, perform the following steps:

1. Validate the host license via the command line using the instructions provided in KB 428537.

2. Manually acknowledge the warning alarm in the vSphere Client.

Additional Information

Refer to the vSphere release notes for the more information on this.