I think it is specific to RHEL/Centos. Server 2.x was broken by an update to RHEL 5.x and neither RHEL nor VMware have done anything to fix it. I don't think other supported distros were affected.
There is also some unfixed security issues with 2.x.
I don't think anyone likes the web-based console in the 2.x series anyway. I'd either stick with the 1.x version or load ESXi on the hardware and move your current OS to a guest.
VMware ESXi doesn't support the same hardware as CentOS does.