Hello,
This error message indicates that the VGAuthService service failed to start during the installation of VMtools. This could be due to a permission issue or a problem with the service itself.
First, check again that the account you are using to install VMtools has administrative privileges on the server.
Besides, check for system updates and make sure all available updates are installed. And disabling your antivirus temporarily during the installation process.
Check if the VGAuthService service is already running on the server. If it is, try stopping the service and then installing VMtools again. If not, try starting it manually before installing VMtools. To do this, open the Services console (services.msc) and locate the VGAuthService service. Right-click on it and select Start.
If these steps do not resolve the issue, you may need to ask for a Support Request with VMware Support.
I hope this helps.
Best regards