You receive this event when the host is unable to write log files to the configured system log directory, and instead uses the default log directory. This can occur if the host does not have permission to write to the directory (for example, a NAS filesystem which is exported read-only), or if the host is completely unable to access the filesystem.
A problem event appears in the vSphere Client with the following message:
The configured log directory /vmfs/volumes/########-#### cannot be used. The default directory /scratch/log will be used instead.
Logs are written to the host's local scratch partition for ESXi, or stored in RAM for a host provisioned with Auto-Deploy, rather than to the desired log directory.