This is expected behavior.
This 'EVC Mode' is visible on all powered on VMs from vSphere 6.7, whether or not the VMs are in a cluster with a configured EVC baseline, and whether or not the VMs have per-VM-EVC mode configured. The 'EVC Mode' is reporting what CPU features are exposed to the Guest operating system, and the minimum CPU instruction set needed for vMotion.
Usually the EVC setting shown when a VM is powered on is what EVC mode is the minimum the VM can enter, for example:
However, given that the auto-assigned per-VM EVC mode is set based on the CPU feature set presented to ESXi rather than the actual generation of the physical CPU, there can be cases when the chosen EVC mode is higher than the CPU generation. You might for example have virtual machines running with an automatically set Skylake EVC mode, while their hypervisor-host is actually using a Broadwell CPU, simply because the CPU features made available by BIOS/Microcode are covering all of the ones included in the Skyline EVC mode.
To prevent this from happening, you should explicitly configure a cluster-wide EVC mode suitable for your CPU generation.