Symptoms:
You may experience these performance issues with a multiple CPU virtual machine running on an ESX host:
VMware vSphere Esxi 5.x
VMware vSphere Esxi 6.x
VMware vSphere Esxi 7.x
A virtual machine can have multiple virtual CPUs. The scheduler of the ESXi needs to place all of these in the the same processing cycle of the physical CPU. This only works if that cycle has enough threads available to place the virtual CPUs. If there aren't for example because other virtual machines are already utilizing a part of the physical threads, the VM has to wait for the required resources to be available again.
Even when only a part of the virtual CPUs is really required for the current workload in the virtual machine, that workload has to wait until all, even the currently unused virtual cores, can be run on the physical processor. This behavior is also known as "co-stop"
This placement becomes more difficult, the higher the number of virtual CPUs for a specific virtual machine is, and it can lead to measurable performance loss for the guest operation system or applications within this VM.