Note: If Latency Sensitivity was set to High while the Virtual Machine was powered on, the pre-allocation will only apply at the next power cycle.
This is a display artifact only and has no negative performance impact on the virtual machine or the host it is running on. To limit false positives, the memory activity for VMs with pre-allocated memory has been reduced to 75% in ESXi 7.0 U2
Workaround:
To disable the alarm definition using the HTML5 vSphere Client:
Note: These steps will disable the alarm for all virtual machines. If you require the memory usage alarm to be functional for other than the VMs affected by the behavior described in this article, you will need to create a custom alarm with the same settings as the default one, on an object these VMs are nested under (such as a VM folder for example).