So here is the deal:
If the baseline attached to the host contains the VEM patches associated with the Cisco switch it will not allow the patch.
ALSO, if the VCenter Server is on the host your are trying to stage it will fail. (Which is why I couldn't get mine to work.).
So, in order to get this patch done:
Create a Baseline which does not include the Cisco patches. Dynamic with VMWare only will work.
Remove the default "critical host patches" baseline, and any other which may have the Cisco patches.
Add the custom baseline created above.
Make sure the VCenter VM is not on the host and patch.
Hope that helps.
Bob