This can happen when:
E.g., 173GB used space would be 346GB Provisioned space for a VCSA VM with FTT=1 (Mirror) VSAN storage policy. If the Provisioned Space is greater than the "Default" storage size for the selected VCSA size, you would only see the next larger storage options in the drop-down
This is a known issue and VMware Engineering is working on a fix in a future release.
Note: While there are articles available on the Internet, describing how to shrink the disks of the VCSA after you finished the upgrade, please be aware that none of them are officially supported.
Instead, to work around the issue, you can follow the below two-stages approach during upgrade:
Consider a scenario where the VCSA was originally deployed with XLarge storage size, and the new VCSA should only have a "Large" or "Normal" storage size. However, keep in mind that the new VCSA needs to have enough storage space to accommodate the data imported from the source appliance