vDS operation failed on host xxxxxxx.domainname, got (vmodl.fault.SystemError) exception

This error occurs repeatedly while adding ESXi host to the Nexus 1000v. The problem seems with the VMWare Update Manager (VUM) that it doesn't initiate the required VEM module for the installation on the ESXi host we are adding to the Nexus 1000v.

I solved my problem by manually installing the .vib file on the ESXi host. And here are the steps to follow.

Go to the Nexus 1000v through web browser

You get list of links to download files, download your required .vib file from there. for me it was Cisco_bootbank_cisco-vem-v340-esx_5.2.1.3.2.8.0-6.0.1.vib

Upload that vib file to the ESXi host with WinSCP, say in the /tmp folder

Run following command to install the .vib file .i.e. the vem module.

esxcli software vib install -v /tmp/Cisco_bootbank_cisco-vem-v340-esx_5.2.1.3.2.8.0-6.0.1.vib

After the .vib file has been installed successfully, add the ESXi host to the Nexus 1000v.

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