Nested Fault Domains are available for 2-node clusters, yes. But it requires at least 3 disk groups per host to have in-host RAID1:https://core.vmware.com/blog/nested-fault-domain-2-node-cluster-deployments
Also interesting read: https://www.yellow-bricks.com/2022/03/17/stretched-cluster-witness-failure-resilience-in-vsan-7-0/
