After you perform a scan, the compliance state of the attached baseline might be incompatible. The incompatible compliance state requires more attention and further action to be resolved.

Incompatibility might be caused by an update in the baseline for a number of reasons.
Conflict
The update conflicts with either an existing update on the host or another update in the Update Manager patch repository. Update Manager reports the type of conflict. A conflict does not indicate any problem on the target object. It just means that the current baseline selection is in conflict. You can perform scan, remediation, and staging operations. In most cases, you can take action to resolve the conflict.
Conflicting New Module
The host update is a new module that provides software for the first time, but is in conflict with either an existing update on the host or another update in the Update Manager repository. Update Manager reports the type of conflict. A conflict does not indicate any problem on the target object. It just means that the current baseline selection is in conflict. You can perform scan, remediation, and staging operations. In most cases, you must take action to resolve the conflict.
Missing Package
This state occurs when metadata for the update is in the depot but the corresponding binary payload is missing. The reasons can be that the product might not have an update for a given locale; the Update Manager patch repository is deleted or corrupt, and Update Manager no longer has Internet access to download updates; or you have manually deleted an upgrade package from the Update Manager repository.
Not Installable
The update cannot be installed. The scan operation might succeed on the target object, but remediation cannot be performed.
Incompatible Hardware
The hardware of the selected object is incompatible or has insufficient resources to support the update. For example, when you perform a host upgrade scan against a 32-bit host or if a host has insufficient RAM.
Unsupported Upgrade
The upgrade path is not possible. For example, the current hardware version of the virtual machine is greater than the highest version supported on the host.