This KB provides information about preserve the VMFS datastore option while upgrade/install the ESXi host.
During ESXi upgrade if we don't choose to preserve VMFS, clear the current installation of VMware ESXi, as well as the VMFS datastore, then cleanly install the new version.
If there are any VMs running on the same VMFS volume it will result in data lose.
Environment
VMware vSphere ESXi
Resolution
Choose option to Upgrade ESXi, preserve VMFS datastore.
Upgrade ESXi, preserve VMFS datastore : update the current installation of VMware ESXi while keeping its current settings and also keeping its VMFS datastore.
Install ESXi, preserve VMFS datastore : reinstall VMware ESXi from scratch, but keeping the VMFS datastore.
Install ESXi, overwrite VMFS datastore : clear the current installation of VMware ESXi, as well as the VMFS datastore, then cleanly install the new version of VMware ESXi and create a new VMFS datastore