After installing Microsoft KB5022842 for Windows Server (https://www.catalog.update.microsoft.com/Search.aspx?q=KB5022842), you will notice that the VM no longer boots and throws a Secure Boot error.
This happens on any ESXi version 7.0.x
Workaround:
VMWare has issued a KB for this: https://kb.vmware.com/s/article/90947