Parallel remediation is set within vSphere Lifecycle Manager, but the upgrades of ESXi hosts still happen sequentially, one at a time.
Unable to upgrade more that one ESXi host at a time with NSX-enabled clusters (although this has no connection with NSX).
How to Configure the vSphere Lifecycle Manager Remediation Settings
https://techdocs.broadcom.com/us/en/vmware-cis/vsphere/vsphere/8-0/managing-host-and-cluster-lifecycle-8-0/configuring-vlcm-remediation-settings-1/configure-the-vlcm-remediation-settings.html
vCenter 7.x
vCenter 8.x
This is expected behaviour and is something documented by respective HSM plugin providers like HPE, Cisco and Dell OpenManage.
Essentially, when there is firmware included in a custom ESXi host image from any hardware vendors, the upgrade will only work sequentially and this is by design.
Firmware lifecycle made simple with vSphere Lifecycle Manager and HSM providers
https://blogs.vmware.com/cloud-foundation/2024/11/07/firmware-lifecycle-made-simple-with-vsphere-lifecycle-manager
Plan downtime accordingly since only sequential upgrades are possible with firmware upgrades through vCenter.