You will have an option to either preserve the VMFS volume or re-create it, if you have VM(s) that live on the VMFS volume, then you'll probably want to preserve it unless you want to start from scratch.
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Easy solution if you have separated "OS" (esxi installation partitions" and "DATA" (VMFS partitions for VMs) devices: Disconnect "DATA" devices and re-install ESXi. Then reconnect devices and open datastore browser with VIClient . Goto folder of you VM(s) and right client on vmx-file and select "Add to inventory".
If your data storage1 is local then you loss you data and if its remote VMFSthen dont worried about it. ESXi will take care of that and ask you before doing anything.
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