When you setup a home lab and you created nested ESXi host, then at certain point you want to create a EVC cluster to begin testing all features. but when you add an ESX host you get following error.

'The host's CPU hardware should support the cluster's current Enhanced vMotion Compatibility mode, but some of the necessary CPU features are missing from the host. Check the host's BIOS configuration to ensure that no necessary features are disabled (such as XD, VT, AES, or PCLMULQDQ for Intel, or NX for AMD). For more information, see KB articles 1003212 and 1034926.'

To solve this you need to set the advanced CPUID Mask on the nested esxi VM.

1) First you need to lookup your EVC CPUID details.
In the vSphere Web Client: Go to Home – Hosts and Clusters and select your Cluster, on the manage tab select settings and then under Configuration section select VMWare EVC. set your EVC mode by clicking Edit button. once you set your EVC mode you can expand “Current CPUID Details”. Here you find all the feature flags.  write them down some where for later use.

EVC CPUID Feature Flags

2) Second you need to shut down your VM that runs the nested ESXi host. Right click the vm and chose “Edit settings”. Expand CPU section and you will find ‘CPUID Mask’. next to it you will find an advanced.. shortcut.

here you will fill in the feature flags you found in step 1

Advanced CPUID Mask

Click Ok until you exit all the settings screens. boot your nested ESXi VM. you should be able now to add your ESXi host to the cluster

remark: Only got it working the EVC mode Westmere Generation