Storage Selection Error - You must select a place to install ESX
ESX/ESXi does not support LUNs over 2TB in size. This is due to a limitation of the SCSI-2 protocol, and is not specific to VMware.
To workaround the issue, you can configure a RAID to present multiple local volumes that are less than 2TB in size. To be precise, the volumes created must be 2TB minus 512 Bytes to be at the supported maximum.
For more information about this limitation, see ESX/ESXi 3.x/4.x hosts do not support 2-terabyte LUNs (3371739).