The Preferred fault domain unset check in the vSAN Health Service verifies that the preferred fault domain is configured, and that it is the fault domain of one of the two data sites in the stretched cluster.
The preferred fault domain is utilized by the witness host, and it must be the fault domain of either data site in the vSAN stretched cluster. It cannot be empty. If this health check is not green (OK), the vSAN stretched cluster has configuration errors that affect its operation and may cause unexpected results in failover scenarios.