After moving a VM from vSAN storage to traditional storage the VM storage policy still shows the vSAN policy but Policy Compliance is "Not Applicable"
ESXi 8.0
When migrating the VM to the new datastore, the storage policy was not adjusted to match the new datastore
When migrating a VM the VM storage policy should be adjusted to match the new datastore or set to "Datastore Default"
If the VM has already been migrated the storage policy can be changed to match the new datastore or to "Datastore Default" by right clicking the VM from the inventory list > VM policies > Edit VM Storage Policies
Also see vSphere Storage Policies and Virtual Machines for additional information on applying and managing storage policies.