Nice.   I was tricked into believing that when I do a 'VMWare Tools' install and deselect VMCI that would be the end of it.

However, doing just that DOES NOT adjust the VMX file vmci0 setting.    The vmx vmci0 is 'true' and really should be

'false' if one is not install it using the tools.    So Microsoft update sees the pci item.   It looks like setting it to 'false'

turns off the vmci pci item and stops the Microsoft update.   My guess is that there is some disconnect between

install VMWare tools and making changes to the vmx file.

It looks like you nailed!