"VMware EVC is Enabled" for a powered-on is displayed when the features required by a running VM are matched against some EVC modes.
"VMware EVC is Enabled" may show an EVC mode for a VM even though there is no EVC mode configured for the Cluster or the VM. An EVC mode is displayed when the features required by a running VM can be matched against some EVC modes. Sometimes a match can not be found, in which case no EVC mode is displayed for the VM. This is an expected behavior.
Below scenarios are applicable for the powered-on VMs where Per-VM EVC mode is Disabled and underlying ESXi host is not the part of any EVC mode Enabled cluster:
Scenario 1: "VMware EVC is Enabled" in vCenter UI for the powered-on VMs running on ESXi hosts with Skylake / Cascade Lake processors.
In this case, VM Hardware version 21 (HWv21) VMs running on older CPUs like Sky lake / Cascade lake, and HWv20 and older VMs will still show "VMware EVC is Enabled" after VM power on because they don't expose the new features to the VM and will match with one of the prescribed EVC modes.
Scenario 2: "VMware EVC is Disabled" in vCenter UI for the powered-on VMs running on ESXi hosts with Ice Lake / Cooper Lake, Sapphire Rapids / Emerald Rapids and Granite Rapids processors.
It's a combination of the newer host CPU generation, which includes new features, and the use of a newer VM Hardware version e.g. HWv21, which allows new features to be exposed to the VM.
Some of these new features aren't part of any of the prescribed EVC modes, so the vCenter UI won't match with any of them, and it will continue to display "VMware EVC is Disabled" for the VM's Per-VM EVC mode after Power-on.
The minimum EVC mode the VM can enter is as follows:
To prevent this from happening, configure a Cluster-wide EVC mode suitable for the CPU generation. Refer this Technical Document for more details : How to Change the vSphere EVC Mode for Your Cluster