"The item or object referred to could not be found" - Error in vSphere when changing port binding of distributed port group from Static to Ephemeral

Products

• VMware vCenter Server

Issue/Introduction

After creating a distributed port group with Static port binding, you are unable to edit this setting to change port binding to Ephemeral. 

There are no VMs attached to this port group, as it is not possible to change the port binding setting if there are VMs attached to the port group. 

Environment

VMware vSphere 8.x

Cause

The cause of this behavior is currently unknown.

Resolution

Create a new distributed port group with Ephemeral port binding selected. It is supported to have multiple port groups, on the same DVS, with the same VLAN ID.