When running NSX pre-checks, the warning "In-place upgrade not supported with L7 firewall enabled. Please disable L7 firewall or use maintenance-mode upgrade" is reported.
VMware NSX
NSX in-place upgrades do not support L7 firewall being enabled.
To continue with the upgrade, please either disable the L7 firewall or perform the upgrade with the maintenance-mode method.
For further details on the limitations of in-place upgrades please refer to Operational Impact of the NSX Upgrade.