A VM crashes and is restarted by vSphere HA due to the fact there are more I/Os issued through the LWD I/O tracker than the maximum number of I/Os it was configured to handle. LWD (light weight delta) and SES (storage efficieny service) modules are leveraged by VM protection software such as vSphere Replication, Dell Recoverpoint etc.
ESXi 7.x
ESXi 8.x
The I/O pattern for the VMDK of the VM is such that there are too many COW fragments that are written to the SES and the I/O tracker limit for number of tracked I/Os seems to be under provisioned for the SES case. The current limit is 1536 but the limit should be increased to 8000.
The issue is fixed in ESXi 8.0u3b