You may see this error if you are attempting to connect or add an ESXi 4.x host to vCenter Server 4.x and you have already verified that there is sufficient space on the ESXi host.
To resolve this issue, verify that the hardware on which ESXi is installed is actually in the VMware Hardware Compatibility Guide. This error may occur with incompatible hardware.
If the ESX hardware is found and deemed compatible, then:
- Reboot the ESX host
- After rebooting, re-add the correct license key into the host
- Re-add the host back to vCenter Server
If you see this message appear in a configuration composed of fully supported components, but are unable to resolve the issue with the information provided in vCenter Server agent service does not install or upgrade on ESX/ESXi 4.0 hosts (1016262), open a Support Request with VMware Technical Support. For more information, see Filing a Support Request in My VMware (2006985).
Based on VMware KB 1031005