Isoaltion Event occurs when the ESXi host is unable to reach its gateway so as long as your hosts management ports are connected to both Nexus 7K switches if one is brought down the traffic shoudl fail over tot he secondary path - if they are then when you shut the switch it is connected to isolation will occur.
Now what does that mean for the VMs - this will all depend on how the Isolation Response is Configured - if it set to power off the VMs the VMs should shit down and restart on the iter hosts in the cluster -
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