Symptoms:
Whenever you try to apply a vSphere Standard license on a ESXI host that is using a VDS you get the following :
#The selected license does not include the vSphere Distributed Switch feature.
This should be possible according to this doc :
https://techdocs.broadcom.com/us/en/vmware-cis/nsx/nsxt-dc/3-2/administration-guide/host-switches/managing-nsx-on-a-vsphere-distributed-switch/license-for-vsphere-distributed-switch.html
If you have an NSX-T license, you do not need an Enterprise Plus license for VDS.