Hi,
To boot a new VM using ISO of OS e following:
1. Make sure the OS ISO is uploaded in the Datastore of your ESXi server
2. Open the console of your newly created VM, then click on Connect/Disconnect CD/DVD devices of the virtual machine tab and select the option Connect to ISO image on a datastore --> browse your datastore and select the OS ISO image.
3. Restart your VM to boot from the ISO image.
4. Make sure once your OS installation is complete you remove the ISO image from the CD/DVD i.e. you disconnect the device
Hope this information is helpful to you
Nikhil