VMs on Host getting created with Network Adapter in Pass-through (direct-path I/O) mode

I have an HPE Proliant DL380 Gen 10 host running the latest HPE customized ESXi 6.7u3 build. Whenever I create a VM with a VMXNET3 network adapter, it is created with Pass-through (direct path I/O) enabled. All PCI devices on this host have passthrough disabled. There are passthrough capable network adapters on the host, but it is disabled on all of them. Has anyone run in to this before? I have searched for a documented way to correct this, but I can't find one.

If this matters, this host was used with the HPE customized 6.0u3 ESXi image without trouble for a short time.

Thank you for the help!

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