This article explains the Cluster Health - Software version compatibility check in the vSAN Health Service and provides details about why it might report an error.
VMware vSAN (All Versions)
This test verifies that the ESXi software version and the vSAN on-disk format version is compatible across all ESXi hosts and disks in the cluster.
Software version incompatibility is a critical issue, and the only solution is to upgrade ESXi software. If the test returns a warning or error, it means that one or more hosts in this cluster cannot support any in-use vSAN disks. Incompatible software can be due to one of the following scenarios:
The following KB correlates the vSAN disk format versions with their compatible ESXi software versions.
Understanding vSAN on-disk format versions and compatibility
To troubleshoot this critical issue, check the software version of each ESXi host, and upgrade the hosts with outdated software versions. This issue must be fixed immediately.