A virtual machine is a software-based computer that runs on a physical host computer or a remote server. It has its own operating system, applications, and virtual hardware devices that are configured by the user. The virtual hardware devices are backed by the physical resources of the Hypervisor, which is a software layer that manages the virtual machines and allocates the CPU, memory, network, and storage resources to them.
The configuration files of a virtual machine contain information such as the name, UUID, BIOS settings, hardware settings, and resource settings of the virtual machine. These files are stored on a datastore, which is a logical container for files and virtual disks12.
References:
1: VMware vSphere 7.0 Documentation - Virtual Machine Configuration Files
2: Cisco CCNA Certification Guide - Chapter 10: Virtualization Fundamentals

Explanation:

The Static Persistence (or "on" mode) bundles the links unconditionally and no negotiation protocol is used.
In this mode, neither PAgP nor LACP packets are sent or received.