Moderator: Moved to vSphere vNetwork
Generally, VDS acts as a proxy switch for each connected ESXi host to it. So when you create a link aggregation group (port-channel), a LAG object (with the same number of ports) is also created on the proxy switch of every host. As VMware mentioned on the vSphere Networking guide : "On a host proxy switch, you can connect one physical NIC to only one LAG port. On the distributed switch, one LAG port can have multiple physical NICs from different hosts connected to it."
and also about LACP configuration on physical networking, you should know for each host you must create a separate LACP port-channel on the physical switch. The LAG that is created on the distributed switch must have equal uplinks as the number of ports that have been defined on LACP of physical switch. (also Port Speed and Duplex config and Hashging algorithm must be same on Physical and Virtual)Please mark my comment as the Correct Answer if this solution resolved your problem