I had (/have) what I assume is the same issue.
VM's powered off show "VMware EVC is Disabled"
Powering VM's on they change to EVC Mode "Intel® "Cascade Lake" Generation"
Was unable to migrate VM's between two dis-similar ESXi hosts, (higher feature CPU unable to migrate to lower feature CPU)
After a lot of troubleshooting I was able to get a workaround in place that allows my VM's to migrate between hosts.
System Versions
vSphere Server 7.0.3.00100
ESXi hosts - VMware ESXi, 7.0.2, 18538813
Workaround that worked for me, I am sure there may be a more optimal method, and some steps irrelevant.
Per VM from ESXi host (NOT from vCenter)
State: VM Powered On
"Edit Settings" -> "VM Options" -> "Advanced" -> "Configuration Parameters" -> "Edit Configuration"
"Add Parameter"
Key: evcCompatibilityMode
Value: FALSE
Save/OK
(Tests at this point still show VM unable to migrate to lower featured ESXi CPU)
Power off VM.
(The next may be optional, it is possible a reboot is the only next step)
Unregister VM.
On lower ESXi host register VM
If using distributed virtual switch, you may need to log into the VCSA, edit the VM settings, and connect the network.
Power back on VM.
VM will still show "EVC Mode "Intel® "Cascade Lake" Generation"
But will now successfully migrate between ESXi hosts.