The VM is definitely on the correct host. Management agent restarted already. Host restarted twice at this point.
Logs:
~ # tail -f /var/log/vmkernel.log | grep -i USB
<blank>
~ # tail -f /var/log/usb.log
2017-08-11T10:20:22Z usbarb[41913]: W110: USBArb: Error in rules file at line 1:0, '[' or '{' expected near end of file.
2017-08-11T10:20:22Z usbarb[41913]: I120: VMware USB Arbitration Service Version 11.1.6
2017-08-11T10:20:22Z usbarb[41913]: I120: USBArb: Attempting to connect to existing arbitrator on /var/run/vmware/usbarbitrator-socket.
2017-08-11T10:20:22Z usbarb[41913]: I120: SOCKET creating new socket, connecting to /var/run/vmware/usbarbitrator-socket
2017-08-11T10:20:22Z usbarb[41913]: W110: SOCKET connect failed, error 2: No such file or directory
2017-08-11T10:20:22Z usbarb[41913]: I120: USBArb: Failed to connect to the existing arbitrator.
2017-08-11T10:37:10Z usbarb[41913]: I120: USBArb: UsbArbPipeConnected: Connected to client, socket:13
2017-08-11T10:37:10Z usbarb[41913]: I120: USBArb: UsbArbPipeConnected: Connected to client, socket:14
2017-08-11T10:37:10Z usbarb[41913]: I120: USBArb: Client 44500 connected (version: 6)
2017-08-11T10:37:14Z usbarb[41913]: I120: USBArb: Client 44500 connected (version: 6)
Looks like usbarbitrator wasn't properly connecting to its socket.
/etc/init.d/hostd restart did the job

Thanks for pointing me in the right direction.