VM creation task fails with error: "Invalid virtual machine configuration. Object policy is not compatible with datastore space efficiency policy configured on the cluster".
VM snapshot creation task also fails with the same error.
VMware vSAN 7.x
VMware vSAN 8.x
Cannot create an object in a vSAN Stretched cluster or a ROBO cluster with vSAN Storage Policy's Space efficiency set to "Compression only" or "Deduplication and compression".
Witness host always has a Space efficiency of None.
Due to this, when creating an object in a vSAN Stretched cluster or a ROBO cluster with Space efficiency policy set to "Compression only" or "Deduplication and compression", the object creation will fail with "Invalid virtual machine configuration. Object policy is not compatible with datastore space efficiency policy configured on the cluster" error message.
Note: If this change is made on a Storage Policy which is already applied to VMs, it can cause resync to occur, which can potentially impact performance. Recommended to clone the existing policy and make the above changes to the cloned policy, post which the cloned Policy can be applied to VMs in batches.