VMware: System logs are stored on non-persistent storage error during ESXi installation

I am not sure what your circumstances were, but I was using a Mac to RDP to a Windows server to install nested ESXi servers under VMware Workstation.

The culprit was Mac’s way of sending F keys to VMware after a keyboard grab and it switches screens on you. Instead of install page you get the diagnostic message that can be ignored completely. This is not an error, just a warning.

To send the right key to VMware go to your Mac System Preferences, Keyboard and check “Use all F1, F2, yada yada yada”. Then use the Command key + F11 combo. Do not hold any other key. Repeat with other combinations when needed.