Re: Error: 23038 Setup cannot create vcenter server directory instance

Greetings tdubb123

Seems that your Network service doesn't have enough permission on the root of the drive you’re installing vCenter on. 

i will explain you now step by step how to bypass this error and solve it :

1. Right-click the root drive and click Properties .
2. Click the Security tab.
3. Under "Group and user names", click Add.
4. Enter Network Service then click ok.
5. Check Allow for the Read permission for the Network Service account in the Permissions for Administrators pane.
6. Apply and here you go .

Let me know if you still have problem .