The problem lies with a configuration on the VM Ware side and not with Spotlight. Below are the KB articles from VM Ware pertaining to the underlying issue.
https://kb.vmware.com/s/article/2035510
https://kb.vmware.com/s/article/2055994
As a workaround on the Spotlight end, you can un-check 'Use Diagnostic Server Credential' and manually enter in the credential.