Several months back, I started noticing an increase number of folks reporting problems powering on their vSphere Cluster Services (vCLS) VM when using the VMware Cloud Foundation (VCF) Holodeck Toolkit solution and the following workaround can be applied, which came directly from the Holodeck developers.
While a workaround exists including vCLS script located at C:\VLC\VLC-Holo-Site-1\vclsfix, it was very puzzling because this seems to only happen with the Nested ESXi VMs and the VCF Holodeck Toolkit and it was NOT observed when deploying a regular Nested ESXi environment, but I never took a closer look to see why that might be.
A few weeks back, I recieved an email from Mike Foley (former vSphere HA and vCLS PM), I came to learn the reason folks using the VCF Holodeck Toolkit was seeing this problem and it was specific to that solution due to how the guestOS was configured for the Nested ESXi VMs.