There are # Transport Node Profiles configured with N-VDS switches. N-VDS is not supported starting NSX 4.0. Please delete/edit these Transport Node Profiles before proceeding to upgrade. List of Transport Node Profiles having N-VDS:
VMware NSX-T Data Center 3.x
As mentioned in the NSX 4.0.0.1 release notes VMware by Broadcom has removed support of the NSX N-VDS virtual switch on ESXi hosts starting in NSX 4.0.0.1. N-VDS will remain the supported virtual switch on NSX Edge nodes, native public cloud NSX agents, and bare metal workloads. As a consequence of the above, when running the upgrade pre-checks a warning will be thrown for Transport Node Profiles that are configured with N-VDS.
Workaround
Before starting the NSX-T upgrade, delete the Transport Node Profile that includes the N-VDS once the N-VDS to VDS migration is complete.
If for any reason the Transport Node Profile cannot be deleted prior to the upgrade, once the Transport Node Profile is not in use, it should not block the upgrade.
If the Transport Node Profile is in use, the N-VDS can be migrated to vSphere Distributed Switch. For more information on how to do so, refer to the product documentation here: Migrate Host Switch to vSphere Distributed Switch