Refer to the Exhibit.

An administrator attempts to enable Enhanced vMotion Compatibility (EVC) on a cluster. The operation results in a compatibility error, as shown in the exhibit.
What is the likely cause of this error?

A.
The CPUs in the ESXi host are not AMD CPUs.

B.
The CPUs in the ESXi host do not support hardware virtualization capabilities.

C.
The XD/NX CPU features have not been enabled in the BIOS of the server.

D.
There is no shared storage between the hosts in the cluster.

Explanation:
In general, if a processor can support EVC level XN, it can also support levels XN-1 to X0. For example, a processor that supports the Intel® “Sandy Bridge”
Generation EVC Baseline has an EVC level of L4. Therefore, it can also support EVC levels L3, L2, L1, and L0. However, it cannot support EVC level L5, which
corresponds to the Intel® “Ivy Bridge” Generation. Intel EVC Baselines are listed in Table 1.1.
For AMD processors, there are two different sequences of EVC levels: Levels A0 to A3, which support the first 3 generations of AMD Opteron™ processors, and
levels B0 and above, which support AMD Opteron™ Generation 3 and later processors.
Note: The AMD Opteron™ Generation 3 (no 3DNow!™) EVC baseline is common to both sequences. For example, an AMD processor that supports the AMD
Opteron™ Generation 4 EVC baseline supports the AMD Opteron™ Generation 3 (no 3DNow!™) baseline, but not the AMD Opteron™ Generation 3 baseline. An
AMD processor that supports the AMD Opteron™ Generation 3 baseline supports the AMD Opteron™ Generation 3 (no 3DNow!™) baseline, but not the AMD
Opteron™ Generation 4 baseline.
https://kb.vmware.com/selfservice/microsites/search.do?language=en_US&cmd=displayKC&externalId=1003212