As far as I know this feature (expose IOMMU to guest OS) is to be used for virtualisation based security (VBS) in Windows VMs, so I wouldn't know what you can use this feature for with an Oracle Linux 7.8 VM.
It is not listed for ESXi 6.0, ESXi 6.5 documents because the expose IOMMU to guest feature and VBS inside Windows VMs was introduced with ESXi 6.7, Workstation Pro 14.x and Fusion 10.x; which is why virtual hardware version 14 is needed. In Workstation/Fusion, once VBS is enabled is on the guest VM settings, the virtualised IOMMU will also be enabled.