If the SDDC in the environment is running version 5.2.1 and the VCSA is on 8.x, but the vSAN stretched cluster is running on ESXi 7.x, then it is not possible to assign a vSAN license of either 7.x or 8.x to the vSAN stretched cluster.
VCF: 5.2.1
VCSA: 8.0.x
ESXi: 7.0.x
In VCF 5.2.1, the BOM version of ESXi expected is 8.0 Update 3b.
You cannot assign a 7.x vSAN license because VCF expects ESXi 8.x.
You cannot assign an 8.x vSAN license because the ESXi hosts are still running on 7.x.
Log Snippet : Caused by: com.vmware.vcf.licensemanager.common.exception.LicenseManagerException: License key XXXX-XXXXX-XXXXX-XXXXX-XXXXX, has version 8.0 which is incompatible for hosts [xxx-xxx-esx0X.xxx.com, xxx-xxx-esx0X.xxx.com, xxx-xxx-esx0X.xxx.com, xxx-xxx-esx0X.xxx.com, xxx-xxx-esx0X.xxx.com] and respective versions [7.0.3-24585291, 7.0.3-24585291, 7.0.3-24585291, 7.0.3-24585291, 7.0.3-24585291, 7.0.3-24585291, 7.0.3-24585291, 7.0.3-24585291, 7.0.3-24585291, 7.0.3-24585291, 7.0.3-24585291, 7.0.3-24585291, 7.0.3-24585291].
Upgrade ESXi hosts to 8.0 Update 3b to be able to assign the license successfully.