This issue occurs if the config.xml file, located at /etc/vmware/hostd/ and the proxy.xml file, located at /etc/vmware/hostd/ is empty or has invalid entries. This issue may also occur if there are IPv6 entries in the /etc/hosts file that are associated with the localhost.
Note: In the hostd.log file, when the proxy.xml file is empty, you see the messages similar to:
[2012-07-30 04:13:26.764 FFFCAE80 verbose 'App'] Plugin 9 statically linked
[2012-07-30 04:13:26.764 FFFCAE80 info 'Proxysvc'] Proxy config filepath is /etc/vmware/hostd/proxy.xml
[2012-07-30 04:13:26.765 FFFCAE80 panic 'App'] error: no element found
[2012-07-30 04:13:26.765 FFFCAE80 panic 'App'] backtrace:
[00] rip 16d00c33
[01] rip 16b9303e
[02] rip 16b327a2