This bug was fixed in the package open-vm-tools -

open-vm-tools (2:10.0.7-3227872-5ubuntu1~16.04.2) xenial; urgency=medium

  * Make tools.conf template useful. (LP: #1748122)

 -- Dariusz Gadomski <>  Thu, 15 Feb 2018
11:19:17 +0100

** Changed in: open-vm-tools (Ubuntu Xenial)
       Status: Fix Committed => Fix Released

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  incorrect tools.conf template is shipped with Ubuntu

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