Hi,
My issue got resolved. I found out the problem. The reason why WMI was not working on two Vms, was that, the two vms had the same Hostname as the VM1 which was trying to communicate to them using WMI. But for connection the IP of the vms was being used which was different, still it would connect to itself due to the hostname being same, and say "User credentials cannot be used for local connections". The hostname was being misconfigured due to a call to customizeVapp, which was customizing the two wrong Vms same as VM1.
Thanks,
Mansie