This issue occurs when Distributed Resource Scheduling (DRS) is enabled on the cluster. When DRS is enabled, you must change the trigger event to DRS VM powered on because DRS manages initial placement of the virtual machines.
To change the trigger event:
- Right-click the alarm and click Edit Settings.
- Click the Triggers tab.
- Double-click the VM Powered on event.
- In the dropdown, change the event to DRS VM powered on.
- Click OK.