LLDP traffic is not observed between two virtual machines, even if on the same ESXi host.
ESXi 8.x
VCF 9.0
LLDP frames are filtered by default with the BPDU filter NetMisc_DropBPDUPackets at the virtual switch.
Disable Net.BlockGuestBPDU as per BPDU Filter feature in vSphere:
Note: By disabling BPDU filtering you are allowing all virtual machine vNIC's on the ESXi host to send not only LLDP but also other BPDU's.