For HA to be able to restart virtual machines on another host in case of a host failure, the other host must have access to the virtual machine's files. With local storage on the failed host, the other host will normally not be able to access the virtual machine's files. If you use datastores on local storage HA will only work if you also use the vSphere Storage Appliance (VSA). The vSphere Storage Appliance creates shared storage from local storage.
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