This issue occurs when the CPU resource reservations of the virtual machine exceed the available capacity on the target host.
To resolve this issue:
In the vSphere Client, right-click the virtual machine and click Edit Settings.
Select "Virtual Machine" tab, expand CPU section.
Set the CPU reservations to a value lesser than the capacity of the ESX/ESXi host.
Note: If you do not require CPU reservations, set it to zero and let ESX/ESXi to manage the resource allocation. If you require CPU reservations, it is best to set up resource pools to manage the resource allocation.