Clusters managed by vSphere Configuration Profiles but not by vLCM require minimum ESXi version 8.0.3
VMware vSphere ESXi 7.0.x
This issue occurs when during the VSAN cluster configuration the "ESA" check box was selected. VSAN ESA requires vSphere 8.0, ESXi 7.0.x hosts are not compatible with this feature.
To work around this issue, create a new VSAN OSA cluster, then follow the article Migrating a vSAN node from one vSAN cluster to another vSAN cluster to move the existing hosts into this cluster.
Afterwards you can add the 7.0.x host to the cluster
If this is not vSAN cluster, you can check the update tab of esxi and update tab of cluster. both should have single image profile.
If the cluster has setting of configuration profile, create new cluster with single image and add hosts to new cluster.
Create a Cluster That Uses a Single Image by Composing an Image Manually