Hello,
When deploying from a template, this parameter will no be used.
Your VM will be deployed in the same datastore as the template.
This deployment is just a clone that will take by default all the parameters CPU / RAM / Disks of the template.
For my part, since I like complicated things, after the deployement, Ansible is launching a powercli script that will place the VM in a datastore based on categories and available space.
(The whole VM, not just the disk, in order not to have the vmx and log files in a datastore and the disk in another datastore)