In the /var/log/vmkernel.log file, you will see an error similar to:
WARNING: NetDVS: DVSHandleClientWriteFailure:2767: Failed to write critical property com.vmware.nsx.vdl2.enabled on DVS da c2 88 43 db d0 45 94-85 bc a5 4f 1c fb c3 a5, return :Success.
This issue is fixed in ESXi 70U2 and fix is in subsequent releases.
Workaround:
To work around this issue, see VMwareDoc for NSX upgrade procedure Configure Host.