Some posters have mentioned that removal and re-addition of the host will resolve the issue, and while this is true, when using the standard vSwitch this is a simple task. However, when using a VDS switch, you cannot simply and easily remove and re-add the host, especially when you do not have a direct line to your network administrators who could then disable any kind of inbound port channel group which would cause you to lose connectivity to the host. In that case a simple 3 minute remove from inventory and re-add turns into a 20-25 minute ordeal including special command line commands at the console required to re-enable IP hash as an outbound load balancing scenario.
As I struggled with this issue on 6 hosts that were members of a VDS switch, I decided to try to simply join the hosts to AD (and was successful) by simply using the old vSphere client to log into each host directly, and join them to AD. This was a 2 minute work around and was successful with each host. Additionally, refreshing the authentication services page within vCenter reflected the change from local authentication to Domain authentication.
I am a happy camper today.
I hope this is helpful.
