Can't get RancherOS to boot

On ESXi 6.5 host, I just cannot get any version of rancheros past 1.0.4 to fully boot. I’ve tried everything, including all the RCs, and today’s RC. All of them get stuck in the same place here:

If I control C, it will finish, but openvmtools isn’t running. Doing a ‘docker run -d godmodelabs/open-vm-tools’ works fine, but I need to do this with every reboot and every new VM provisioned with rancheros. It’s pretty tedious.

Any ideas what’s going on?