Updating VMware Tools fails with the error , Editing vmx file

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You may receive error during VMware tool update, The reason for this is that upgrading VMware tools within guest is disabled by default. 
To resolve this Edit the virtual machine's vmx file. Add following line in vmx file.

isolation.tools.guestInitiatedUpgrade.disable = "FALSE"
To Edit vmx file In ESXi/ESX using the vCenter Server GUI
  1. Shut down the virtual machine, if it is running.
  2. Open the datastore browser and navigate to the virtual machine directory.
  3. Using the GUI option, download the .vmx to your local desktop.
  4. Create a backup of the .vmx on your local workstation.
  5. Open the .vmx file using a text editor and add this line to the end of the file:

    isolation.tools.guestInitiatedUpgrade.disable = “FALSE”

  6. When saved, upload the file via the datastore browser GUI.
  7. Power on the virtual machine.
  8. Verify functionality before deleting the .vmx backup on your local workstation.
In ESXi/ESX using the command line
  1. Shut down the virtual machine if it is running.
  2. Open an SSH session to a host
  3. Navigate to the virtual machine directory.
  4. Run this command to create a backup of the .vmx file:

    cp .vmx .vmx.backup

  5. Open the .vmx file with a text editor and add this line to the end of the file:

    isolation.tools.guestInitiatedUpgrade.disable = “FALSE”

  6. Power on the virtual machine.
  7. Verify the virtual machine is functional before deleting the backup file. To delete the backup file, run the command:

    – rm .vmx.backup

Now you should be able to upgrade VM Tools

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