This issue may occur if:
Update Manager is installed with a remote SQL 2005 or 2008 database using Windows Authentication and the Update Manager Service is set to log on as a Local System Account.
To resolve this issue, change the Update Manager Service to log on to the remote database as a Windows account with Administrator privileges:
Click Start > Run, type services.msc, and click OK.
Right-click VMware Update Manager and click Properties.
Click the Log on tab.
Select This account, specify the Windows account along with the appropriate password, then click OK.
Right-click VMware Update Manager and click Restart.