cannot be inflated because it is not a vmfs thin-provisioned disk
2023-05-19T07:56:43.278Z warning hostd[2100372] [Originator@6876 sub=Vdisksvc opID=esxui-b65c-08d3 user=root] The virtual disk (/vmfs/volumes/6177bdb6-17f9f458-83b3-##########/VM/VM.vmdk) cannot be inflated because it is not a vmfs thin-provisioned disk - type: <11>, capacity: <322122547200>, used: <322122547200>.
This is not a defect or a bug as the code defined is working as expected.