CVE-2022-31697 is an information disclosure vulnerability affecting VMware vCenter Server and VMware Cloud Foundation versions prior to 7.0 U3i, 6.7.0 U3s, and 6.5 U3u for vCenter Server, and versions 3.x and 4.x for VMware Cloud Foundation. The vulnerability arises because the vCenter Server Appliance logs credentials in plaintext during ISO operations such as Install, Upgrade, Migrate, or Restore. A malicious actor with access to the workstation that initiates these ISO operations can retrieve plaintext passwords used during these processes from the logs. This vulnerability is classified under CWE-312 (Cleartext Storage of Sensitive Information) and has a CVSS v3.1 base score of 5.5 (medium severity). The vector indicates that the attack requires local access (AV:L), low attack complexity (AC:L), privileges (PR:L), no user interaction (UI:N), and impacts confidentiality (C:H) without affecting integrity or availability. No known exploits are currently reported in the wild. The vulnerability does not affect the core functionality or availability of the vCenter Server but exposes sensitive credentials that could be leveraged for further attacks if an attacker gains access to the workstation involved in the ISO operation. The scope is limited to local or privileged users on the workstation performing these operations, making it a targeted risk rather than a widespread remote exploit.

For European organizations, this vulnerability poses a significant risk to the confidentiality of credentials used in critical VMware infrastructure management operations. Since vCenter Server and VMware Cloud Foundation are widely deployed in enterprise data centers and cloud environments across Europe, exposure of plaintext credentials could lead to unauthorized access to virtualized environments, enabling lateral movement, data exfiltration, or further compromise of infrastructure. The impact is particularly critical for organizations with strict data protection regulations such as GDPR, where unauthorized access to systems could result in compliance violations and reputational damage. However, the requirement for local access and privileges to the workstation limits the attack surface to insiders or attackers who have already breached initial defenses. The vulnerability could be exploited in scenarios where workstations are shared, insufficiently secured, or compromised by malware. Given the strategic importance of virtualized infrastructure in sectors like finance, manufacturing, and government within Europe, exploitation could disrupt business continuity or lead to sensitive data exposure.

To mitigate this vulnerability, European organizations should implement the following specific measures: 1) Immediately upgrade VMware vCenter Server and VMware Cloud Foundation to the fixed versions (7.0 U3i or later, 6.7.0 U3s or later, 6.5 U3u or later) as provided by VMware. 2) Restrict and monitor access to workstations used for ISO operations, ensuring only trusted and authorized personnel can perform these tasks. 3) Implement strict endpoint security controls on these workstations, including disk encryption, access controls, and regular malware scanning to prevent unauthorized access to logs. 4) Regularly audit and securely manage log files to ensure sensitive information is not retained longer than necessary and is stored with appropriate protections. 5) Employ network segmentation and least privilege principles to limit the ability of attackers to move laterally from compromised workstations to critical infrastructure. 6) Educate administrators and operators about the risks of credential exposure during ISO operations and enforce secure operational procedures. 7) Consider using dedicated, hardened management workstations isolated from general user environments for performing VMware ISO operations. These steps go beyond generic patching by focusing on operational security and access controls specific to the vulnerability context.