Error can happen on trying to power on a virtual machine after manually adjusting the Advanced Parameter "sched.cpu.latencySensitivity" as "high".
The task of "Reconfigure virtual machine" if attempted to set CPU reservation will return this full error:
The task "Reconfigure virtual machine" can also fail with the same error if no changes are made, only opening Edit Settings then click "Ok"
ESXi 8.0 U2 and later with VM hardware version 21
This can happen if the parameter is set manually by changing the "sched.cpu.latencySensitivity" using the "Advanced Parameters" or editing the VMX file directly.