I am trying to reproject LAS datasets derived from Pix4D photogrammetry output of a UAV flight that were created with the WGS_1984_UTM_Zone_17N / VCS:WGS_1984 (Z unit is meters above ellipsoid) spatial reference so that it can align with other third-party LAS dataset (traditional lidar; not photogrammetry) in the NAD_1983_StatePlane_Pennsylvania_South_FIPS_3702_Feet / VCS:NAVD88_height_ (Z unit is Ft_US) spatial reference.
The Extract LAS (3D Analyst)—ArcGIS Pro | Documentation, it explains that the LAS data can be reprojected using the Output Coordinate System environment and it is claimed:
'If the spatial reference contains a vertical coordinate system, the LAS files can also be reprojected to another height reference system if the vertical datum transformation grids are installed and a transformation is available from the source reference and the target coordinate system.'