/proc on host unmounted by agent

Hi!
I have a very simple VMware virtual machine booting https://releases.rancher.com/os/v1.5.5/vmware/rancheros.iso. I use it to run Rancher-agent v1.2.11 (for Rancher 1.6). This is a nobrainer and has been working fine.

I just updated VMWare VM Compatibility to version 15 and now every time I try to start Rancher-Agent, /proc gets unmounted. If I remount /proc, Rancher-Agent immediately unmounts it again. I doubled the ram on the VM but that didn’t help. WTH is going on?

Please help.

Here is a small portion of the log:

time="2020-03-18T12:26:49Z" level=info msg="Launching agent" 
time="2020-03-18T12:26:49Z" level=info msg="Detecting cloud provider" 
time="2020-03-18T12:26:49Z" level=info msg="Listening for events on https://rancherserver.kristianstad.se/v1" 
time="2020-03-18T12:26:49Z" level=info msg="launching hostapi" 
time="2020-03-18T12:26:49Z" level=info msg="Listening on /tmp/log.sock" 
time="2020-03-18T12:26:49Z" level=info msg="Serialize compute requests: false, driver: overlay2" 
time="2020-03-18T12:26:49Z" level=info msg="Starting event router." 
time="2020-03-18T12:26:52Z" level=info msg="Generating host key" 
time="2020-03-18T12:26:52Z" level=info msg="Done generating host key" 
time="2020-03-18T12:26:54Z" level=info msg="Received event: Name: compute.instance.inspect, Event Id: 88684e85-6e54-47ed-98b9-ba44b93e5477, Resource Id: " 
time="2020-03-18T12:26:54Z" level=info msg="rancher id []: Container with docker id [c9a01f5242993bf5e2b9b1a41f0f89dedb3db917e86a82a80ed5dfe43f4460e0] has been inspected" 
time="2020-03-18T12:26:54Z" level=info msg="Reply: 88684e85-6e54-47ed-98b9-ba44b93e5477, compute.instance.inspect, :instanceInspect" 
time="2020-03-18T12:26:56Z" level=info msg="Received event: Name: storage.image.activate, Event Id: 99c0dc8c-43f5-4498-ac57-930ae75f6644, Resource Id: 1ispm68994" 
time="2020-03-18T12:26:56Z" level=info msg="Received event: Name: storage.volume.activate, Event Id: 5c7ac607-eb55-48bb-9827-506383e2bcb6, Resource Id: 1vspm85699" 
time="2020-03-18T12:26:56Z" level=info msg="rancher id [1vspm85699]: Volume with name [] has been activated" 
time="2020-03-18T12:26:56Z" level=info msg="Reply: 5c7ac607-eb55-48bb-9827-506383e2bcb6, storage.volume.activate, 1vspm85699:volumeStoragePoolMap" 
time="2020-03-18T12:26:56Z" level=info msg="Received event: Name: compute.instance.activate, Event Id: 8f876b56-fa9d-43ab-ad3c-ca6f6ddc11c7, Resource Id: 1ihm73283" 
time="2020-03-18T12:26:56Z" level=info msg="Reply: 8f876b56-fa9d-43ab-ad3c-ca6f6ddc11c7, compute.instance.activate, 1ihm73283:instanceHostMap" 
time="2020-03-18T12:26:57Z" level=info msg="Received event: Name: storage.image.activate, Event Id: a1af46bc-300b-4f02-bc16-dd7bdd1de7fd, Resource Id: 1ispm68995" 
time="2020-03-18T12:26:57Z" level=info msg="Received event: Name: storage.image.activate, Event Id: f2a14b78-a4dc-41d4-927d-53d203c923b8, Resource Id: 1ispm68996" 
time="2020-03-18T12:26:57Z" level=info msg="Reply: 99c0dc8c-43f5-4498-ac57-930ae75f6644, storage.image.activate, 1ispm68994:imageStoragePoolMap, transitioning: yes: Pulling from rancher/net" 
time="2020-03-18T12:26:57Z" level=info msg="Reply: 99c0dc8c-43f5-4498-ac57-930ae75f6644, storage.image.activate, 1ispm68994:imageStoragePoolMap, transitioning: yes: Already exists" 
time="2020-03-18T12:26:57Z" level=info msg="Received event: Name: storage.volume.remove, Event Id: 07e61743-8dbe-405d-a75a-2eff4937cc1f, Resource Id: 1vspm85587" 
time="2020-03-18T12:26:57Z" level=info msg="rancher id [1vspm85587]: Volume with name [] has been removed" 
time="2020-03-18T12:26:57Z" level=info msg="Reply: 07e61743-8dbe-405d-a75a-2eff4937cc1f, storage.volume.remove, 1vspm85587:volumeStoragePoolMap" 
time="2020-03-18T12:26:57Z" level=info msg="Reply: 99c0dc8c-43f5-4498-ac57-930ae75f6644, storage.image.activate, 1ispm68994:imageStoragePoolMap, transitioning: yes: Pulling fs layer" 
time="2020-03-18T12:26:57Z" level=info msg="Reply: 99c0dc8c-43f5-4498-ac57-930ae75f6644, storage.image.activate, 1ispm68994:imageStoragePoolMap, transitioning: yes: Waiting" 
time="2020-03-18T12:26:58Z" level=info msg="Received event: Name: storage.image.activate, Event Id: 972f9907-ce53-4f5f-b985-d031a34b8042, Resource Id: 1ispm68997" 
time="2020-03-18T12:26:58Z" level=info msg="Received event: Name: storage.image.activate, Event Id: 9bc615f8-d057-4f8c-9758-c0989a718342, Resource Id: 1ispm68998" 
time="2020-03-18T12:26:58Z" level=info msg="Reply: 99c0dc8c-43f5-4498-ac57-930ae75f6644, storage.image.activate, 1ispm68994:imageStoragePoolMap, transitioning: yes: Downloading" 
time="2020-03-18T12:26:58Z" level=info msg="Reply: 99c0dc8c-43f5-4498-ac57-930ae75f6644, storage.image.activate, 1ispm68994:imageStoragePoolMap, transitioning: yes: Verifying Checksum" 
time="2020-03-18T12:26:58Z" level=info msg="Reply: 99c0dc8c-43f5-4498-ac57-930ae75f6644, storage.image.activate, 1ispm68994:imageStoragePoolMap, transitioning: yes: Download complete" 
time="2020-03-18T12:26:58Z" level=info msg="Reply: 99c0dc8c-43f5-4498-ac57-930ae75f6644, storage.image.activate, 1ispm68994:imageStoragePoolMap, transitioning: yes: Downloading" 
time="2020-03-18T12:26:58Z" level=info msg="Reply: 99c0dc8c-43f5-4498-ac57-930ae75f6644, storage.image.activate, 1ispm68994:imageStoragePoolMap, transitioning: yes: Verifying Checksum" 
time="2020-03-18T12:26:58Z" level=info msg="Received event: Name: storage.image.activate, Event Id: a5648e91-94ca-4704-b994-86e9f312ea12, Resource Id: 1ispm68999" 
time="2020-03-18T12:26:58Z" level=info msg="Reply: 99c0dc8c-43f5-4498-ac57-930ae75f6644, storage.image.activate, 1ispm68994:imageStoragePoolMap, transitioning: yes: Download complete" 
time="2020-03-18T12:26:58Z" level=info msg="Reply: 99c0dc8c-43f5-4498-ac57-930ae75f6644, storage.image.activate, 1ispm68994:imageStoragePoolMap, transitioning: yes: Downloading" 
time="2020-03-18T12:26:58Z" level=info msg="Reply: 99c0dc8c-43f5-4498-ac57-930ae75f6644, storage.image.activate, 1ispm68994:imageStoragePoolMap, transitioning: yes: Verifying Checksum" 
time="2020-03-18T12:26:58Z" level=info msg="Reply: 99c0dc8c-43f5-4498-ac57-930ae75f6644, storage.image.activate, 1ispm68994:imageStoragePoolMap, transitioning: yes: Download complete" 
time="2020-03-18T12:26:58Z" level=info msg="Reply: 99c0dc8c-43f5-4498-ac57-930ae75f6644, storage.image.activate, 1ispm68994:imageStoragePoolMap, transitioning: yes: Extracting" 
time="2020-03-18T12:26:58Z" level=info msg="Reply: a1af46bc-300b-4f02-bc16-dd7bdd1de7fd, storage.image.activate, 1ispm68995:imageStoragePoolMap, transitioning: yes: Pulling from rancher/network-manager" 
time="2020-03-18T12:26:58Z" level=info msg="Reply: 99c0dc8c-43f5-4498-ac57-930ae75f6644, storage.image.activate, 1ispm68994:imageStoragePoolMap, transitioning: yes: Pull complete" 
time="2020-03-18T12:26:58Z" level=info msg="Received event: Name: storage.volume.remove, Event Id: ba680513-c0a6-410f-9875-a58507b6d341, Resource Id: 1vspm85592" 
time="2020-03-18T12:26:58Z" level=info msg="rancher id [1vspm85592]: Volume with name [/var/run/rancher/storage] has been removed" 
time="2020-03-18T12:26:58Z" level=info msg="Reply: ba680513-c0a6-410f-9875-a58507b6d341, storage.volume.remove, 1vspm85592:volumeStoragePoolMap" 
time="2020-03-18T12:26:58Z" level=info msg="Reply: a1af46bc-300b-4f02-bc16-dd7bdd1de7fd, storage.image.activate, 1ispm68995:imageStoragePoolMap, transitioning: yes: Already exists" 
time="2020-03-18T12:26:58Z" level=info msg="Received event: Name: storage.volume.remove, Event Id: 41c67efe-689c-417e-b5c2-2d5f4e7e52e7, Resource Id: 1vspm85593" 
time="2020-03-18T12:26:58Z" level=info msg="rancher id [1vspm85593]: Volume with name [/proc] has been removed" 
time="2020-03-18T12:26:58Z" level=info msg="Reply: 41c67efe-689c-417e-b5c2-2d5f4e7e52e7, storage.volume.remove, 1vspm85593:volumeStoragePoolMap"