Problem: Windows System Error Event 7011, Service control manager “A timeout (30000 milisecond) was reached while waiting for a transaction response from the VMtools service.” This timeout event error only happen on windows VM with 8.6.5 version of VMWare tools. Basically this is not an application or service specific but a generic windows error and it can occur with other services too.
Solution: Reinstall VMware Tools
Step 1: Stop VMware Tools service.
Step 2: Uninstall VMware Tools through Control Panel.
Step 3: Delete VMware Tools folder that is under Program Files > VMware.
Step 4: Right-click the virtual machine and click Guest > Install/Upgrade VMware Tools.
Step 5: Open a Console to the virtual machine and log into the guest operating system.
Step 6: Click Start > Run, type cmd
, and click OK. A Command Prompt window opens.
Step 7: Change the drive to your CD-ROM drive (For example, D:\).
Step 8: Type setup /c
and press Enter to force removal of all registry entries and delete the old version of VMware Tools.
Note: For 64-bit guest operating systems, type setup64 /c
Step 9: Open My Computer and double-click the CD-ROM that contains VMware Tools.
Step 10: After Auto-Run starts, follow the prompts to install.
Step 11: When the installation completes, reboot the guest operating system.
Reference
VMWare Knowledge Base: VMware Tools may not install on a Windows guest operating system after upgrading to a newer version of ESX/ESXi (1012693)
VMWare Technology Network Community: VMTools Service Time outs errors