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I was running on nested environment too, and faced the exact same error.
My issue got resolved by doing the following : Check the box, "Expose hardware assisted CPU virtualization" on the 2 ESXi VMs(under VM properties ) installed on the ESXi physical Dell Server and uncheck the same option for the vcenter VM (was unchecked for me by default).
I hope this helps
Thank you Namratha for the solution. worked like a charm.
Where to find this option
Expose hardware assisted CPU virtualization
If any nested ESXi installed. you have to consider few steps.
1. Go to edit settings of nested ESXi VM -> CPU -> Hardware virtualization -> enable the check boxes.
From here you will be able to install and run the VM's but may not be having network connectivity.
2. For the check the vSwitch security mode and accept all three below.
- Promiscuous mode
- MAC address changes
- Forged transmits
I was facing the same problem but then i have solved it by check the box ""Expose hardware assisted CPU virtualization" (turning the nestd virtualization on) in the vm or guest o/s . I hope this will help you.tree1245 ERROR: Task failed on server: Module 'CPUID' power on failed.