Missing VMXNET3 and SVGA drivers after failed VMware Tools installation on Windows servers

Products

VMware vSphere ESXi

Issue/Introduction

A failed or corrupted VMware Tools upgrade causes the guest operating system to unload virtual drivers. This results in the loss of network connectivity and console resolution.

Symptoms

Network adapters are missing from the Network Connections window.
The vSphere console displays a low resolution and cannot be resized.
Device Manager shows "Ethernet Controller" or "Standard VGA Graphics Adapter" under Other devices with a yellow exclamation mark (Code 28).
The vmware.log file contains the entry: Guest: Driver=vmxnet3, Version=X.X.X.X - unloaded.
Installation fails with Error 21004 or "Setup failed to install the VMXNet3 driver automatically."

Environment

VMware vSphere ESXi
Windows Server 2012 R2, 2016, 2019, 2022

Cause

Corrupted VMware Tools installations occur when the installer initiates while Windows Update processes are pending or when the Device Install Service is disabled.
Restrictive Group Policy Objects (GPO) or stale registry keys from previous driver versions can also block the re-registration of the VMXNET3 and SVGA drivers.

Resolution

Step 1: Add a Temporary Legacy Network Adapter

To break the cycle, present a network card to the VM that Windows Server recognizes natively without VMware Tools.

Power off the affected virtual machine.
Edit the VM settings in the vSphere Client.
Click Add New Device and select Network Adapter.
Change the Adapter Type dropdown menu from VMXNET3 to E1000e (or E1000).
Power on the virtual machine.
Log in to Windows. Open Device Manager and verify that an Intel(R) 82574L Gigabit Network Connection is now successfully recognized under Network adapters.

Step 2: Configure Static IP and DNS Settings

Active Directory requires proper DNS routing to locate the Domain Controller.

Open Network Connections .
Right-click the newly populated Intel network adapter and select Properties.
Double-click Internet Protocol Version 4 (TCP/IPv4).
Select Use the following IP address and input static IP details (IP, Subnet Mask, and Default Gateway).
Select Use the following DNS server addresses and populate the Preferred DNS server field with the IP address of Active Directory DNS server.
Click OK and apply the changes.

Step 3: Install VMware Tools

With local network connectivity restored, clear any media locks to install the VMware drivers.

In the vSphere Client, right-click the VM, go to Edit Settings, and look at the CD/DVD Drive.
Ensure it is set to "Client Device" or "Host Device" and that any existing ISO files are unmounted. Ensure the "Connected" checkbox is clear.
From the vSphere VM menu, click Actions -> Guest OS -> Install VMware Tools.
Inside the Windows Guest OS, open File Explorer, navigate to This PC, and double-click the virtual optical drive containing VMware Tools.
Launch setup64.exe and follow the prompt wizard using the Typical setup option.
Reboot the virtual machine when prompted by the installer.

Step 4: Revert to High-Performance VMXNET3 Adapter

Now that VMware Tools has injected the proper drivers into the Guest OS, the VMXNET3 adapter can be utilized.

Log back into Windows and open Device Manager to verify that the vmxnet3 Ethernet Adapter is now listed with no warning icons.
Open Network Connections and open the properties of the VMXNET3 adapter (usually named Ethernet0).
Re-enter static IP address, Subnet Mask, Default Gateway, and Preferred DNS Server details onto this adapter.
Power off the virtual machine one last time.
Edit the VM settings via the vSphere Client and Remove the temporary E1000e network adapter.
Power on the VM.

Step 5: Restart Device Install service of any driver installation continues to fail

Refer KB: VMware Tools device driver installation failure on Windows Server