Release : 10.5
Component : CA Service Virtualization
The issue seems to be with the nested/separate local.properties that you had for the VSE1 service.
When we created a new VSE Service and used default local.properties file, it was registered correctly in EDB as performance VSE.
Since you would be running only one VSE on that machine, we renamed the VSE1 specific local properties file as default local.properties and moved some VSE performance related properties to the VSE1 vmoptions file.
After restarting VSE1, we could see in the EDB database that it was registered correctly as Performance VSE and the initial data on EDB console also showed in under Performance VSEs section.