Hello suhag79,
"But wanted to know, how it will impact on vSAN operation and what are the pros and cons from management and performance point of view.
You will likely get better performance from having multiple disk-groups per host over single disk-group per host as this will have more cache-tier devices to spread the load and may allow better % cache to capacity ratios.
The only downside I can think of is that each new disk-group requires a cache-tier SSD that will require a slot but not provide any capacity.
"if whole server goes down then both the DG will go down, in this case, how it will impact the vSAN availability."
Yes, of course both would be unavailable, similarly if they are both attached to one controller and this fails/crashes both would be unavailable - this will affect availability in the same way as losing a node with a single disk-group would, if you have FTT=1 and the rest of the cluster is okay then the Objects should remain accessible and functional.
Bob