This issue is resolved in vSphere ESXi 7.0 U3l (build number 21424296).
This issue is resolved in vSphere ESXi 8.0b (build number 21203435).
Workaround:
To resolve the unresponsive Host, rebooting the Host is the only workaround at this time.
Disabling SIOC policies on the VMs, or increasing the Shares and Limits will allow consolidation to work.
It has also been seen that cloning the VM in question resolves the issue.
On top of this;
- The issue is not seen when SPM is disabled.
- The issue is not seen with policies with higher limits such as Gold or even when the Lead policy is reapplied.