If you have no latency on the vSCSI level (GAVG) but in the Guest / App, the most likely explanation is filter drivers. Did you exclude the DB files from whatever antivirus you have configured? You can check the running ones with fltmc (from my laptop, not a VM):
C:\Windows\system32>fltmc
Filter Name Num Instances Altitude Frame
------------------------------ ------------- ------------ -----
WdFilter 9 328010 0
storqosflt 0 244000 0
wcifs 0 189900 0
CldFlt 6 180451 0
FileCrypt 0 141100 0
luafv 1 135000 0
npsvctrig 1 46000 0
Wof 7 40700 0
FileInfo 9 40500 0
If you want to assess the actual impact, you need to record an ETL trace that looks at how much time is spent in each filter.
You need the WPT, the easiest way to install that is to download etwpackage.zip from https://github.com/google/UIforETW/releases on any client, run bin/UIforETW.exe. This will download and install the most up to date WPT to the local machine (to: c:\Program Files (x86)\Windows Kits\10\Windows Performance Toolkit\ , even on 64bit OS), you can then copy the WPT folder to the target VM.
While you are observing the latency, run:
xperf -on PROC_THREAD+LOADER+HARD_FAULTS+DPC+INTERRUPT+CSWITCH+PROFILE+FLT_IO_INIT+FLT_IO+FLT_FASTIO+FLT_IO_FAILURE+FILENAME -stackwalk profile+MiniFilterPreOpInit+MiniFilterPostOpInit -buffersize 1024 -minbuffers 1024
After ~30 seconds stop and safe:
xperf -stop -d descriptive_filename.etl
The analysis is well described in other places, the file itself collects way too much info about your machine to be shared on some online community.
TL;DR if there is no observed latency at the vSphere level, the issue is most likely in the guest OS