What could restrict a vSphere operator to configure only two virtual CPUs when deploying a new VM?

The restriction of configuring only two virtual CPUs when deploying a new VM is directly related to the capabilities of the selected ESXi host. If the host itself is limited to only two physical CPUs, this would fundamentally restrict the number of virtual CPUs (vCPUs) that can be allocated to any virtual machine deployed on that host. Each vCPU corresponds to one physical CPU core, and thus the maximum number of vCPUs that can be assigned to a VM is constrained by the number of physical cores available.

In this scenario, if the ESXi host only has two CPUs, regardless of the virtualization technology or the version of ESXi, the VM can only be configured to use a maximum of two vCPUs. This limitation is rooted in the physical resources of the host rather than settings or configurations at the virtualization layer, such as DRS mode or compatibility settings. The other options either describe functionalities that do not inherently restrict CPU assignment or pertain to other aspects of VM deployment.