As you are logging as the local admin i am pretty sure it is not a permissions thing. But it could be a licence thing.
I am just off a call with VMware support for a capacity calculation problem since my upgrade to 6.6 but came across another thing that may be causing this.
The engineer has seen this twice this week. In my case when i selected a host in the environment tab i was getting a invalid licence watermark all over the screen. The engineer didnt say it was a bug with the upgrade but the workaround that fixed it for me and the other customer was:
In administration, management and licencing
In this screen my licence usage was 0
select licence group tab
Select the product Licencing group and edit it. (I think this is a default group and again the usage was 0)
In my case i had to tick the licence key again and complete the wizard. This then reapplied the licences to my environment and got rid of the error message.
If this is the case with you it might explain why you cant do the reports bit as it is a licence specific option.