Microcode issues are usually related to BIOS not properly recognizing the processor, but since this is happening only after installing specific software like VMWare*, it seems to be software related, however I would still suggest installing the latest BIOS version for your server system to see if that helps.
Thanks Adolfo. I have the latest firmware and bios already installed. I also just found out 30 min ago that VMWare loads the Intel processor microupdate post-boot. Even though Intel's site does not list VMWare as a supported OS for their latest microcode update file I am going to try it anyway. If it breaks I will just rebuild the server since it is not in production yet. HP Support did not know of this issue either and also has not been able to supply a solution. Still waiting to hear back more from VMWare - since they are ones providing the microcode.dat file. I also found all my other HP BL490 G7 servers have this same issue.