It seems like the default ESXi installation does not have enough local drive space for a diagnostic log bundle. Is there a way to fix this issue without reinstalling ESXi? The symptom is that I try to export the diagnostic logs via the vSphere interface, and the ESXi collections fail. This wasn't a problem in v4.0, but apparently the bundles are larger in 4.1.
you will need to create a scratch partition. We direct ours to the local storage of the ESXi Host. When you create your scratch partition, you'll need to reboot for the changes to take affect.
Using the vSphere Client you can go to the configuration tab of the ESXi host--Configuration-Software-Advanced settings-ScratchConfig