When a host is managed by the Cisco Nexus 1000V virtual switch and you check the compliance of the host against an upgrade baseline, the scan messages provide information about problems with compliance between the VEM modules installed on the host and the modules available on the ESXi 7.0 image.

vSphere Lifecycle Manager supports Cisco Nexus 1000V, a virtual access software switch that works with VMware vSphere and consists of two components.
Virtual Supervisor Module (VSM)
The control plane of the switch and a virtual machine that runs NX-OS.
Virtual Ethernet Module (VEM)
A virtual line card embedded in ESXi hosts.

vSphere Lifecycle Manager determines whether a host is managed by Cisco Nexus 1000V. vSphere Lifecycle Manager verifies whether the Cisco Nexus 1000V VEM VIBs in the ESXi upgrade image are compatible with the Cisco Nexus 1000V VSM that manages the host.

By using vSphere ESXi Image Builder, you can create custom ESXi images, which contain third-party VIBs that are required for a successful remediation operation.

Table 1. Compliance Check Results for the Cisco Nexus 1000V Network Switch
Compliance Check Message Description
The upgrade does not contain any Cisco Nexus 1000V software package that is compatible with the Cisco Nexus 1000V software package on the host. Upgrading the host will remove the feature from the host. A VEM VIB is not available on the ESXi 7.0 upgrade image.
The host is currently added to a Cisco Nexus 1000V virtual network switch. The upgrade contains a Cisco Nexus 1000V software package VIB_name that is incompatible with the Cisco Nexus 1000V VSM. Upgrading the host will remove the feature from the host. The VEM VIB on the ESXi 7.0 upgrade image is not compatible with the version of the VSM.
The host is currently added to a Cisco Nexus 1000V virtual network switch. The upgrade does not contain any Cisco Nexus 1000V software package that is compatible with the Cisco Nexus 1000V VSM. Upgrading the host will remove the feature from the host. The host and the image do not contain VEM VIBs, but the host is still listed in vCenter Server as managed by Cisco Nexus 1000V.
Cannot determine whether the upgrade breaks Cisco Nexus 1000V virtual network switch feature on the host. If the host does not have the feature, you can ignore this warning. There was a problem with determining compatibility between the VEM VIB on the ESXi 7.0 upgrade image and the VSM. Check whether the version of the VSM managing the host is certified as being compatible with vCenter Server 7.0 and ESXi 7.0.