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Just run into this issue and tried to connect iSCSI disk to Win2012 cluster. No matter how hard I tried, it just disappear from Failover manager.
I googled it and found this

What types of drives can I use with Storage Spaces?

You can use commodity drives attached via Serial-Attached SCSI (SAS), Serial ATA (SATA), or USB. Storage layers that abstract the physical disks are not compatible with Storage Spaces. This includes VHDs and pass-through disks in a virtual machine, and storage subsystems that layer a RAID implementation on top of the physical disks. iSCSI and Fibre Channel controllers are not supported by Storage Spaces.
RAID adapters, if used, must be in non-RAID mode with all RAID functionality disabled. Such adapters must not abstract the physical disks, cache data, or obscure any attached devices including enclosure services provided by attached just-a-bunch-of-disks (JBOD) devices. Storage Spaces is compatible only with RAID adapters that support completely disabling all RAID functionality.
Yes, in Windows Server 2012 you are able to leverage Clustered Spaces only for SAS connected JBODs.

To explain the philosophy/rationale behind this: In Windows 8 (equally applicable to Windows Server 2012), Storage Spaces enables delivery of a new category of highly capable storage solutions at dramatically lower price-points & maximized operational simplicity. In doing so, we have strived to ensure a predictably consistent usage experience (irrespective of storage component hardware failures) while delivering excellent performance. Our internal testing exposed complex interactions when combining Spaces with “storage arrays” connected via iSCSI and/or FC. Therefore, for Windows 8 (Windows Server 2012), we are constraining Spaces based deployments to SAS connected JBODs (for business critical deployments), and SATA/USB connected disks (for home/enthusiast/small-business customers).


Stand by for answer from Microsoft



I have found solution how to connect iSCSI server to VMM, but not via cluster though. I will write a new post about how to do it. However, still waiting for MS reply regarding this interesting thing.


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