When remediating an ESXi host in an image-based cluster, VMs that can't be migrated are powered off to allow the ESXi host to enter Maintenance Mode ahead of remediation.
In the vCenter Server logging, the following or similar logging is seen.
YYYY-MM-DDTHH:MM:SS info vmware-vum-server[56209] [Originator@6876 sub=Telemetry] [TelemetryManager 261] Sending telemetry data: {"@type":"pman_effective_coordinator_policy","taskId":"<taskID here>","entityId":"entityID here>","failureAction":"RETRY","failureActionRetryDelay":300,"failureActionRetryCount":3,"preRemediationPowerAction":"POWER_OFF_VMS","enableQuickBoot":true,"disableDpm":true,"disableHac":false,"evacuateOfflineVms":false,"enforceHclValidation":true,"parallelRemediationEnabled":false,"maxHostsForParallelRemediation":0,"enforceQuickPatch":false}
VMware vCenter Server 8.x
The Cluster Remediation Setting for VM Power State will power off any powered-on VMs on the host if it is unable to migrate them ahead of placing the host into Maintenance Mode. The default selection is Do not change power state.
Lifecycle Manager > Settings > Image > Edit Cluster Remediation Settings
This is working as designed.
Change this Cluster Remediation Setting to Do not Change power state, and manually migrate any pinned VMs to other hosts.