If the physical switch is using link aggregation, Route based on IP hash load balancing must be used

If the physical switch is using link aggregation, Route based on IP hash load balancing must be used

https://kb.vmware.com/selfservice/microsites/search.do?language=en_US&cmd=displayKC&externalId=1004088 

• Do not use beacon probing with IP HASH load balancing.
• Do not configure standby or unused uplinks with IP HASH load balancing.
• ESXi 5.1, 5.5, 6.0 and 6.5 support LACP on vDS only