Network adapter fails to initialize after VMware Tools upgrade

Products

• VMware vSphere ESXi

Issue/Introduction

• After upgrading VMware Tools on a Windows virtual machine, the network adapters (VMXNET3 or E1000) fail to appear in the Network Connections window, resulting in a loss of connectivity.
• VMware Tools upgrade fails with error: Setup failed to install the VMXNet3 driver automatically.
• Network adapters are visible in Device Manager but missing from Network Connections.
• C:\Windows\INF\setupapi.dev.log contains:
  ndv: Timed out waiting for device post-install to complete.
ndv: Error 1460: This operation returned because the timeout period expired. 
     ump:      {Plug and Play Service: Device Install exit(000005b4)}
dvi: Device has problem: 0x38 

Environment

VMware vSphere ESXi 7.x and 8.x
VMware Tools 12.x 

Cause

This issue occurs due to corruption within the Windows Guest OS TCP/IP stack or the Windows Plug and Play subsystem. This corruption prevents the OS from completing the post-installation configuration for the network class, even when the virtual hardware and drivers are functioning correctly.

Resolution

 Engage Microsoft Support to verify and repair the corrupted Windows TCP/IP stack.

Additional Information

Ensure the Device Install Service is running and set to Automatic in the Guest OS services.