The LACP support on a vSphere Distributed Switch lets network devices negotiate automatic bundling of links by sending LACP packets to a peer. However, the LACP support on a vSphere Distributed Switch has limitations.
The LACP is not supported with software iSCSI port binding. iSCSI multipathing over LAG is supported, if port binding is not used.
The LACP support settings are not available in host profiles.
The LACP support is not possible between nested ESXi hosts.
The LACP support does not work with the ESXi dump collector.
The LACP control packets (LACPDU) do not get mirrored when port mirroring is enabled.
The teaming and failover health check does not work for LAG ports. LACP checks the connectivity of the LAG ports.
The enhanced LACP support works correctly when only one LAG handles the traffic per distributed port or port group.