This issue occurs because the storage path is marked as Permanent Device Loss (PDL) even before the TUR (from the Array) has marked the path as PDL.
A PDL is returned from either the target (array) or the firmware on the controller. Some changes/regressions might also cause a PDL to be returned, even if it was marked as a PDL from the Array/Controller. In this situation, any further I/O on the same path is FAST PDL'ed on the VMware layer as those paths would no longer be usable or active. This is exactly what happens during a Non Disruptive Upgrade (NDU).