Support for certificates with weak signature algorithms has been removed in vCenter Server 8.0. The certificate with subject '/C=##/O=##, ##./OU=See #####/OU=(c) ###, ###. - for authorized use only/CN=### - G3' in VECS store KMS_ENCRYPTION has weak signature algorithm sha1WithRSAEncryption.
VMware vCenter 8.x
vCenter Server has been configured with an external key provider using SHA1 encryption certificate. Since SHA1 support has been dropped 8.0 onwards, it is being flagged by the Upgrade precheck.
For more details refer VMware vSphere 8.0 Release Notes
To resolve this issue engage the KMS vendor and re-issue new SHA2 certificate and update the same on the vCenter:
To workaround this issue,
Post the above steps, continue with the vCenter Upgrade workflow.