If vCenter is rebuilt and the host is re-added, the vCenter Server Distributed Switch does not recognize the host's proxy copy of the switch.
Error:
"The host proxy switch associated with ####-####-###-###-##-###-###.####.##.## no longer exists in vCenter Server. vCenter Server is not able to automatically remove the host proxy switch because it is still in use. To resolve the issue, disconnect any VMs and VMkernel adapters that might be connected to the switch and remove the switch."
VMware vCenter Server
VMware vSphere ESXi
When vCenter Server is rebuilt, it no longer recognizes or controls the distributed network settings that were configured before. Even though each ESXi host still has a copy of the network configuration, the new vCenter Server is not automatically aware of or connected to it.
This is an expected behavior. Distributed switches are created and owned by vCenter, and a proxy copy is given to each host. In situations where the vCenter is rebuilt and the host is re-added, the vCenter Server Distributed Switch does not recognize the host's proxy copy of the switch. This error will generate asking the user to verify that the host's proxy copy is the same as the vCenter Server's Distributed Switch.
There are 2 methods for resolving this vMotion issue and proxy vDS alarm see this ESXi host using Distributed Switches (vDS) fails migration to a new cluster managed by a different vCenter server.