So I tried what you said,
1. I created role named "Lockout Exception Users" with Host Permission.
2. Then, I defined the domain user, limdynasty\noc with the permission lockout exception users on the ESXi host.
3. When adding the noc user to the exception user, it still failed saying the account does not exist.
NOTE: I tried creating a local noc account on the ESXi host and added the lockdown exception user from the ESXi and enabled the strict lockdown from vcenter server, however this ended up no users logging in.