vSphere provisioning: Waiting for SSH to be available

I am very new to Rancher. I have a Kubernetes cluster v 1.17.9 based on CFCR and a rancher version 2.5.9 running on top of it. VMWare vSphere is the provider.
A cloud credential for vSphere is created. Rancher is able to read vSphere resources.
And cluster template for vSphere is created. As a template OS I’m using an arbitrary Ubuntu image.

However when provisioning the cluster the following error comes up:

2021/08/20 09:14:24 [INFO] [node-controller-rancher-machine] (cluster6) Cloning VM from VM or Template: /AP-XXXX/vm/Farm/template0...
2021/08/20 09:14:24 [INFO] [node-controller-rancher-machine] (cluster6) Finding datastore /AP-XXXX/datastore/MGMT-Datastores/cgd-mgmt-3par05-L00
2021/08/20 09:14:28 [INFO] [node-controller-rancher-machine] (cluster6) Adding network: /AP-XXXX/network/cgd-vmware-mgmtz.p2.farm.net
2021/08/20 09:14:29 [INFO] [node-controller-rancher-machine] (cluster6) Resizing disk disk-1000-0 up from 12582912Kb to 30720000Kb
2021/08/20 09:14:29 [INFO] [node-controller-rancher-machine] (cluster6) Setting disk.enableUUID to TRUE
2021/08/20 09:14:30 [INFO] [node-controller-rancher-machine] (cluster6) Creating cloud-init.iso
2021/08/20 09:14:30 [INFO] [node-controller-rancher-machine] (cluster6) Uploading cloud-init.iso
2021/08/20 09:14:31 [INFO] [node-controller-rancher-machine] (cluster6) Mounting cloudinit user-data.iso
2021/08/20 09:14:35 [INFO] [node-controller-rancher-machine] (cluster6) Waiting for VMware Tools to come online...
2021/08/20 09:15:39 [INFO] [node-controller-rancher-machine] Waiting for machine to be running, this may take a few minutes...
2021/08/20 09:15:39 [INFO] [node-controller-rancher-machine] Detecting operating system of created instance...
2021/08/20 09:15:39 [INFO] [node-controller-rancher-machine] Waiting for SSH to be available...
2021/08/20 09:21:17 [INFO] [node-controller-rancher-machine] The default lines below are for a sh/bash shell, you can specify the shell you're using, with the --shell flag.
2021/08/20 09:21:17 [INFO] [node-controller-rancher-machine]
2021/08/20 09:21:18 [INFO] Generating and uploading node config cluster6
2021/08/20 09:21:18 [ERROR] error syncing 'c-qc9kf/m-89lmv': handler node-controller: Error creating machine: Error detecting OS: Too many retries waiting for SSH to be available.  Last error: Maximum number of retries (60) exceeded, requeuing

What is wrong? How to troubleshoot this? Logs give no information.