Attached an image which demonstrates the console refresh issue. When I first open the console, it looks like this for few seconds and then everything is normal. Then when I open some windows, for few seconds you will notice the issue and then the screen refreshes. I just installed this VM fresh with hw version 8 with esx5.1. Definitely a bug as exact same VM with exact same hardware doesn't have the same issue with ESX5.0. I have also tried multiple vendor servers HP Blades and super micro. So not a hardware issue. Also I am not connecting to this VM using any vnc viewer like I did before and i didn't see the console errors on vmware.log with this VM. As I mentioned if anyone not using console much or haven't seen ESX5.0 or ESX4.1 much, you may not notice this issue.