When you create a disk inside a VM, you have the option to select the type of disk, as follows:

1. Open up vSphere Web Client and log in to the vCenter Server.
2. Select Hosts and Clusters on the Home screen.
3. Navigate to the ESXi host where you want to create a new VM.
4. Right-click on the host and select New Virtual Machine.
5. Select Create a new virtual machine and click on Next.
6. Specify the name of the VM and the folder where it should be created. Click on Next.
7. Select compute resource and click on Next.
8. Select the datastore you want to put it in and click on Next.

9. Select the compatibility level (which sets the hardware version) and click on Next.
10. Select the guest OS's family and version. Click on Next.
11. Edit CPU, Memory, Network, and SCSI controller.
12. In the New Hard Disk section, select the size of the VM hard disk.
13. At this point, you have to select one of the mentioned types of disk. By default, Thick Provision Lazy Zeroed is selected. However, you have the option to select any one of the three types:

14. Once you have customized the hardware, click on Next.
15. Review the configuration and click on Finish.