it’s useful to change the default virtual hardware version for new vms because most people probably don’t want version 10 yet. also if you’re on vsphere 5.5 you probably don’t want a new vm starting at version 7 and then going through the process of updating it to version 8 then version 9.

the setting can only be changed from the web client. once logged into the web client go to vcenter->specific cluster->manage->settings->general and change “default vm compatibility” to the desired value. version 9 is esxi 5.1 and later.

source:
https://blogs.vmware.com/vsphere/2013/02/managing-virtual-hardware-versions-during-a-vsphere-upgrade.html

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