(Optional, off by default) When automatic host selection is in use (a "Host Selection Mode" is set and no explicit host is given), only consider candidate hosts that are physically large enough in terms of RAM: the VM's configured memory size (taken from the source VM or template) must not exceed the host's total physical RAM.

This compares the VM against each host's total capacity, not what is currently free, and applies in addition to the candidate list and to both "Least loaded" and "DRS" modes. Leave it off if your site deliberately oversubscribes (swap, hyperthreads, ...), so that a VM larger than a single host's physical resources is still allowed to be placed.

If no candidate host satisfies it, a message is logged and placement is left to vCenter, as when no usable candidate host exists at all. It has no effect when an explicit host is given.

"Inherit" (the default) uses the setting of the vSphere cloud this belongs to; "Yes" or "No" overrides it for this one only.