Not enough free space to migrate new VMs into the vSAN cluster.
The customer wanted to modify the storage policy Storage rules: Space efficiency from no preference to deduplication and compression to save more space.
cluster has deduplication and compression enabled and is functioning properly, and the existing VMs are using the space.
VMware vSAN 8.x OSA
In the screenshot below, you see that you have the ability to specify which data service needs to be enabled. I guess this is where the confusion comes into play, as this functionality in vSAN OSA is not about enabling the data service for the VM to which you assign the policy. This is about which data service needs to be enabled on the datastore to which the VM can be provisioned.
So what this “storage rules” feature does is that it ensures that the datastore, which is shown as “compatible,” actually has the specified capabilities enabled! In other words, if you tick “data-at-rest encryption” in a policy and assign the policy to a VM, then only the datastores that have “data-at-rest encryption” enabled will be shown as compatible with your VM!
Therefore it will not save you any more space even if change the storage policy Storage rules Space efficiency from No preference to deduplication and compression.
Note: With vSAN 8.0 ESA, the above has changed. With vSAN 8.0 ESA you can set compression per VM, and you actually do that using the policy storage rules.