Credentials used to add the client do not have permissions to run the services on the physical machine.
This can happen even with a domain administrator.
Navigate to the services of the physical machine.
Right click on the 'vRanger Physical Client Service'
Select 'Properties'
Select 'Log On'
Under 'Log on as'
Select 'Local System Account'
Select apply
Right click on 'vRanger Physical Client Service'
Select 'Start'
Go back to the vRanger server
Refresh the inventory
The Red Icon should now be gone
