Updating VMware Tools fails with the error: Update Tools failed. Edit the virtual machine’s vmx file
Symptoms
- You are unable to update VMware Tools
 - Updating VMware Tools fails
 - You see the error:
Update Tools failed. Edit the virtual machine's vmx file, add the line below and try again. Please read KB article 1714 on tips for editing a vmx file.
isolation.tools.guestInitiatedUpgrade.disable = "FALSE" 
Cause
This issue only occurs when using the update VMTools button from within the guest operating system.
Resolution
To resolve this issue, add the necessary setting to the virtual machine configuration file.
- Go to Edit settings from VM
 - Go to Options
 - Go to General (picture 1)
 - Go to button Configuration Parameters (picture 1)
 - Go down to last rule and klik Add row (picture 2)
 - Put 
isolation.tools.guestInitiatedUpgrade.disablein the Name field (picture 3) - Put 
FALSEin the Value field (picture 3) - Click OK and start VM
 - Now you can use the update tools button in the VM without errors
 
Picture 1
Picture 2
Picture 3
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