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.
The EVC setting that is shown when a VM is powered on is what EVC mode is the minimum the VM can enter.
Examples :
- If the VM is on a Broadwell host and power on, it will display "EVC Broadwell". This VM can't migrate to a host less than Broadwell, nor enter an EVC cluster less than Broadwell.
- If the VM is on a Skylake host and power on, it will display "EVC Skylake". This VM can't migrate to a host less than Skylake, nor enter an EVC cluster less than Skylake.