When deploying a Virtual Machine from a Template or OVF after logging into vCenter as a Domain User, the following behavior occurs:
VMware vCenter 7.X
VMware vCenter 8.X
This occurs because the relationship between distributed switch and portgroup is not a direct parent-child relationship. Therefore, permissions set on the DVS do not propagate to its associated port groups—even if “Propagate to children” is selected.
For the DVS from https://vcsa_fqdn/mob/?moid=dvs-####
For the Distributed port group from https://vcsa_fqdn/mob/?moid=dvportgroup-####
Both the DVS and its port groups are independent children of the Network Folder.
The Distributed Port Group requires explicit permission with "Propagate to children" enabled for the particular domain user. Once that is completed, the domain user can select the required portgroup when deploying OVF templates.