Re-post of information that’s already out there. I ran into this error several times and of course more sharing is caring.

Problem / Scenario: 

Upgrading a Intel NUC (Skull Canyon) with ESXi  installed and came across this error.

Upgrade path:

VMware ESXi 7.03 to 8.0.0.

Error:

Out of resources for decompressing data (xxxxxxxxx). gzip extract failed for /tools.t00 (size. xxxxxxxxxxxxxxx) out of resources. 

Error 10 (out of resources) while loading module: /tools.t00

Fatal error: 10 (Out of Resources)

Resolution: 

Disable the Thunderbolt device within the BIOS and reboot.

Reason:

Well documented issue when installing/upgrading ESXi on the Intel NUC’s using the USB to Ethernet VMware Fling.