ESXi install fails with run time error - disk device does not support osdata
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VMWAREESXI
If the disk is too small, then this issue can come.
references:
Changing the default size of the ESX-OSData volume in ESXi 7.0
The biggest change to the partition layout is the consolidation of VMware Tools Locker, Core Dump and Scratch partitions into a new ESX-OSData volume (based on VMFS-L). This new volume can vary in size (up to 138GB) depending on a number of factors including the current ESXi boot media (USB SD-Card, Local Disk) but also the size of the device itself, which is explained in the official documentation.