I finally figured it out. It is my bad, I missed the properties.uaa.jwt.signing_key/verification_key in my manifest. It is something I thought I took care of it, but must have overwritten in subsequent edits.

The clue came from looking at the log files in router_api in api_z1 vm (/var/vcap/sys/log/router* folder)

And I successfully deployed cloud foundry in vsphere. :):)