To understand why this issue occurs and the next plan of action.
Creating a VM with the vSAN default policy "virtual SAN may fail and report as "Datastore does not match current VM policy".
Cross-cluster vMotion would show target datastore is incompatible (even though RAID policy meets the host requirements).
Issue while Migrating the VM
This issue is seen only in M18 and above releases where "monitorInterval" is not present in the log4j2.properties file, Hence SPS logs are not being updated dynamically.
This issue is fixed in M16 SDDCs. It is unlikey to encounter this issue if the SDDC is running M16. Please contact VMware support for assistance remediating this issue for SDDC version other than M16
https://kb.vmware.com/s/article/50113457
For would not be able to migrate or add VMs to the Cluster affected by this issue.