Guest customization for Instant Clone virtual machines is not supported on ARM-based ESXi hosts.
VMware Cloud Foundation 9.1
VMware vSphere Foundation 9.1
As the 'linuxcustnotifier' component of the Instant Clone customization engine was built on an x86 platform, it is not compatible with the ARM architecture. Invoking the vSphere Web Services API or vSphere Automation API to apply new guest settings to an Instant Clone virtual machine will fail.
There is currently no workaround, but will be fixed in a future release.