An ESXi host in vCenter Server reports the following error around 10 minutes after moving a powered on VM to a resource pool:
Unable to apply DRS resource settings on host. This can significantly reduce the effectiveness of DRS.
The following warning message is found in the /var/log/vmware/vpxd.log
on vCenter Server:
Receive ConfigIssue when processing RP updates from host [vim.HostSystem:{host moid},{host IP address}] type vim.fault.InsufficientMemoryResourcesFault on ManagedObject vim.ResourcePool:{resource pool moid} for method vim.ResourcePool.moveInto
This issue impacts ESXi versions below 8.0 U3.
This error could occur on ESXi if there is a miscalculation of the VM's memory requirements during the move into the resource pool. This miscalculation leads to a synchronization issue between ESXi and DRS in vCenter. In this case, ESXi continues to recognize the VM as part of the original resource pool while DRS calculates off of the new resource pool.
This issue is fixed in ESXi 8.0 U3.
Workaround
Avoid changing VM resource pools while a VM is powered on. If the error happens after a powered-on VM is moved to a resource pool follow the below steps:
The error "Unable to apply DRS resource settings on host. This can significantly reduce the effectiveness of DRS."
is not sufficient to match to the issue in this article. If there is no associate to a powered-on VM moving to a resource pool, then refer to KB 1028351: "Unable to apply DRS resource setting on host" error in vCenter Server.