After, rsp. during upgrade of a 7.0.x vCenter many hosts remain in an unconfigured state, marked as failing, regarding HA. The tasklist is filled with attempts to update the ESXi hosts. This is a behavior specific to large environments (>400 hosts) with vLCM in use.
vSphere 7.0
vSphere 7.0.3
The root cause of the issue here is that the environment is serving too many hosts, especially exceeding the documented config maximum for vLCM regarding managed hosts. This max is 400 hosts.
Sequence of events is as such:
If you are aware of the issue upfront the vCenter update:
If the situation comes up during, rsp. after the update:
Finish the update by checking all clusters for hosts that did not make it back to "HA enabled". Putting those still disabled into Maintenance and back out should bring everything back to normal.
The describe issue is not a defect. It happens when a configuration of an environment exceeds the documented configuration maximum of 400 hosts per vCenter when making use of vLCM (vSphere 7). The described resolution is only a workaround just in case such a misconfiguration happens. A proper resolution would be to upgrade to vSphere 8 where the vLCM managed hosts limit has been lifted from 400 to 1000.