Migrating a VM that has VMware managed snapshots is identical to the process described in the preceding subsection. In a VMFS or NFS-based VM, snapshots are VMDK files in the datastore that contain changes to the live VM. In a vVol-based VM, snapshots are FlashArray snapshots.
Storage vMotion automatically copies a VM’s VMware VMFS snapshots. ESXi directs the array to create the necessary data vVols, copies the source VMDK files to them and directs the array to take snapshots of them. It then copies each VMFS-based VMware snapshot to the corresponding data vVol, merging the changes. All copying occurs while the VM is online.
BEST PRACTICE: Only virtual hardware versions 11 and later are supported. If a VM has VMware-managed VMFS-based memory snapshots and is at virtual hardware level 10 or earlier, delete the memory snapshots prior to migration. Upgrading the virtual hardware does not resolve this issue. Refer to VMware’s note here