When you try to stage patches or re mediate ESXi host you get this error- cannot stage patch to ESXi host. Also if you stage some selected patches it may allow you to stage the patches and remediate the host.
Workaround: I couldn’t troubleshoot the issue and hence posting a workaround that I used to remediate the hosts.
1.a. Install Powercli on Windows machine
1.b. Download latest build from vmware site https://www.vmware.com/patchmgr/findPatch.portal?src=vmw_so_vex_fgreh_24
1.c. Add-EsxSoftwareDepot .\ESXi670-latest_build.zip
1.d. Get-EsxImageProfile | ft -AutoSize
1.e. Copy the name of ESXi-6.7.0-build_number-standard
1.f. Export-EsxImageProfile -ImageProfile ESXi-6.7.0-build_number-standard -ExportToISO -Filepath c:\ESXi-6.7.0-latest.iso
2. On VMWare Update Manager, Go to Admin View and upload latest build iso file under ESXi Images
3. Create new baseline- select Host upgrade and select the newly uploaded build image
4. Attach the upgrade baseline to ESXi host in question and remediate the host.