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To use the Set-VMHostAuthentication cmdlet you have to make a connection with the host using the Connect-VIServer cmdlet. Did you do that? For example:
Connect-VIServer 10.50.56.151
Set-VMHost -State Connected -VMHost 10.50.56.151 | Set-VMHostAuthentication -Username root -Password 'trustno1' -JoinDomain $false -Server 10.50.56.151
Disconnect-VIServer 10.50.56.151 -Confirm:$false
Blog: https://rvdnieuwendijk.com/ | Twitter: @rvdnieuwendijk | Author of: https://www.packtpub.com/virtualization-and-cloud/learning-powercli-second-edition