When upgrading from NSX-T 3.x to NSX 4.x Pre-check throws a warning message similar to the below:
There are 1 hosts configured with N-VDS switches. N-VDS is not supported starting NSX 4.0. Please migrate all the N-VDS to VDS before proceeding to upgrade.
To migrate, select System > Quick Start. Click Get Started on the 'Prepare Hosts for Migration from N-VDS to VDS' card.
NSX-T Data Center 3.x
As mentioned in the NSX 4.0.0.1 release notes, VMware by Broadcom has removed support of the NSX N-VDS virtual switch on ESXi hosts starting in NSX 4.0.0.1. N-VDS will remain the supported virtual switch on NSX Edge nodes, native public cloud NSX agents, and baremetal workloads. As a consequence of the above, when running the upgrade prechecks, a warning will be thrown for Transport Nodes that are configured with N-VDS.
To overcome the precheck error and as a pre-requisite of an NSX upgrade activity from 3.x to 4.x NVDS to VDS Migration to be performed.
Document Ref: Migrate Host Switch to vSphere Distributed Switch
If you face any issue during the process, you can raise a support request with Broadcom support team by following Creating and managing Broadcom support cases
Additional KB References if any failures noticed:
Troubleshooting N-VDS to VDS migration
Troubleshooting NSX Precheck and Postcheck Upgrade failures