This issue may impact OnPrem and Cloud deployments.
For VMware Cloud on AWS the issue will be resolved in a future SDDC version release.
Workaround:
Disable replication on the ESXi host where the VM resides.
Ensure there are actually no active SRM protections or HCX migration workflows for that VM.
If access to ESXi host CLI is available, follow the instructions described at
https://kb.vmware.com/s/article/2106946 Alternatively, replication can be disabled by editing the MOB.
This procedure is applicable for Virtual Machines in a VMware Cloud on AWS SDDC.
1. Go to native cloud vCenter https://<SDDC.vCenter.Public.fqdn>/ui
2. Select VM Name (in the URL to identify the vm-id# value)
3. Go to https://<SDDC.vCenter.Public.fqdn>/mob/?moid=hbrManager&method=retrieveReplicationConfig&vmodl=1
4. Input the "Invoke Method" for <vm-id> (identified in #2) and verify the returned output and it will have the HCX replication identifier prefix. (VM is in a "replicated" state)
Note: If the replication id prefix is GID-. Such replications are managed by VRMS component of vSphere Replication and please do not follow the rest of these steps in this kb article (steps 5-8) Disk resizing with vSphere Replication is documented at
https://docs.vmware.com/en/vSphere-Replication/8.2/com.vmware.vsphere.replication-admin.doc/GUID-5139CC95-65BA-4B0A-B126-780D0FB3215F.html. VRMS already takes care of removing HBR settings of VMs that are no longer replicated.
5. If Invoke Method returns an HCX replication identifier prefix go to https://https://<SDDC.vCenter.Public.fqdn>/mob/?moid=hbrManager&method=disableReplication&vmodl=1
6. Input the "Invoke Method" for <vm-id> to disable replication
7. Reverify through steps 3&4 and ensure Invoke Method returns this time, "replicationIsDisabled"
After replication is disabled, expanding the disk through the vCenter UI should work as expected.