I discovered an issue with my vSphere 6.5 (build 5973321) when trying to delegate permissions via new HTML5 UI – when I try to search for a Active Directory group nothing is found. Same operation in old Flash based UI successfully found the group. I also tried with latest vSphere build 7119157 – the issue exists in that version as well. Authentication source Active Directory is configured as “Active Directory (Windows Integrated Authentication).
As the old UI works I’ll be opening a support case sometimes in the new year to confirm the issue with VMWare.
05.01.2018 Update: According to VMWare support HTML5 GUI is not fully supported and this type of issues may occur. It will be fixed when HTML5 GUI will be fully supported.