My response from support included:
Engineering has confirmed that the fix will be part of next ESXi 7 u3 release, planned tentatively to be released in later part of June 2022.
(Note: Release timeline is tentative and could vary depending on internal scenarios).
So it may be released in a future rev of 7.0 U3 or future 8.0 - but in either case it appears to be an acknowledged bug that will have a fix.