As I suspected, sdb is already in use. Though it does not have a physical volume created, it is part of the centos VG with a 443 home LV created on it and mapped to /home.
Just a heads up, the lack of a physical volume (PV) could be problematic, and your system may not survive a reboot. You may want to test that.
In any case, I do not see a new, unused 160GB disk that you described. You likely need to scan the SCSI bus. In order to do that you can run the following commands:
echo "- - -" > /sys/class/scsi_host/host0/scan
echo "- - -" > /sys/class/scsi_host/host1/scan
echo "- - -" > /sys/class/scsi_host/host2/scan
Generally on VM's you will have 3 scsi hosts (host0,host1,host2) but you may have more or fewer. After you run those commands you should see a new disk come in as /dev/sdc with no partition. Find it by re-running the fdisk command:
fdisk -l |grep sd
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