This error means, your host exceeds the limit of "No. Of VM's" what you have set with that host under "WGS VMware addon module" >> "Provisioning Setting". To fix this error, increase the limit of "No. Of VMs" (if there are enough resources with your host).
Please also make sure there are free IP's in your IP pool for that specific host under "WGS VMware addon module" >> "IP Mapping".