1) In the vCenter UI, we see the below error during compatibility check:
Cannot move a VM with native delta disk backing.
Datastore does not satisfy compatibility since it does not support one or more required properties.
2) The affected VM will be configured with snapshot.alwaysAllowNative=TRUE running on a snapshot disk and hosted on a NFS Datastore.
The snapshots of the affected VM are created using fast file clone technology, also called native NFS snapshots.
NAS Arrays that support vSphere APIs for Array Integration (VAAI) uses native NFS snapshots to make virtual machine snapshots
For more information regarding native NFS Snapshots, refer vSphere documentation .
Disks in NFS datastore with VAAI would use native NFS snapshot technology on snapshot creation. VAAI doesn't have a primitive to allow us to "get allocation bitmap", the information about which blocks have been changed versus the parent snapshot. Without such info, we can't reproduce the disk hierarchy in a separate location. So we don't support such disk chain to be migrated out of its NFS datastore location.