VMware vSphere (All versions).
The common causes are that the target LUN is already being used for a VMFS datastore or as an RDM connected to another VM.
Only unformatted LUNs are to be displayed for your selection on "Right-click the VM > Edit Settings> Add RDM disk".
Use only unformatted LUNs to be added as RDMs to virtual machines.
Note:
A LUN to be used as an RDM attached to a VM has to be used exclusively for this end.