The option called "Reserve all guest memory" allows you to allocate and reserve all the memory assigned to a virtual machine (VM). When this option is enabled, VMware guarantees that the full amount of memory allocated to the VM will be reserved and available exclusively for that VM. This ensures that the guest operating system running inside the VM always has the specified amount of memory available.Please note that reserving all guest memory means that the allocated memory will not be shared or used by other virtual machines or the host system. This can result in memory overcommitment issues, where the total memory assigned to all VMs exceeds the available physical memory. Careful consideration should be given to the memory requirements of other VMs and the host system before enabling this option.
VMware vCenter Server Appliance 6.7.x
VMware vSphere ESXi 8.0.0
VMware vCenter Server 7.0.0
VMware vSphere 7.0.x
VMware vCenter Server 8.0.0
What is the difference between enabling it or not, please find the details below if you enable it:
Selecting this check box ensures that all of the VM's memory gets reserved even if you change the total amount of memory for the VM. The memory reservation is immediately readjusted when the VM's memory configuration changes.
For more information please refer to this 3rd-party article.
https://frankdenneman.nl/posts/2013-02-21-reserve-all-guest-memory-all-locked/
japaneseKB:「仮想マシン内のすべてのゲスト メモリを予約 (すべてロック)」オプションの機能について