Please share the information which ESXi Version do you have there.
Is it a cluster or not? Could be that not all ESXi hosts were patched.
Our version is VMware ESXi, 7.0.3, 20036589
Yes, it is a cluster and all ESXi have the same version.
Here is the server which is updated:
Here is the server which is not:
Both of them are member servers.
For VM, which is still needs to update VMware tools, check the following:
VM - > Actions - > Edit Settings - > VM Options - > VMware Tools - >
Especially in the latest vSphere 7.03.xxx Versions the automatic update seems not to work for current Windows Servers. If you do an interactive upgrade it is often the solution to your issue.
AFAIK, there is an authentication problem with MS Server operating systems. Lets have a try with a manual install.