I believe this issue is resolved with the PR created as a result of: https://bugzilla.redhat.com/show_bug.cgi?id=1669582
Ticket closed in error.
Setting to POST as the BZ referenced here resolves the reported issue: https://bugzilla.redhat.com/show_bug.cgi?id=1694137#c4
When we choose "Automatic Placement" for VM during provisioning it on VMware, it does not choose inaccessible/inactive datastore. Hence verified on 5.11.0.26.