Unfortunately, none of the suggestions have made any difference.
I did notice that when I did the exact thing (CD pointing to the same NFS mount's ISO) with another test vm on a different host - it all worked fine.
Something about this ARM Fling vs the x64 esxi it seems.
I can write to the NFS mount no problem - from the esxcli, and from the vCenter's datastore browser, etc.
Doesn't seem to be a read/write type of problem, i.e. permissions.
It does seem to be that the CD just isn't "connected" to the .iso for some strange reason.
I did this:
autoPartitionOSDataSize=8192
to the kernelopt line in boot.cfg, but nothing changed.
FWIW: