Only vCPUs are assigned. Think of this as thin provisioning for CPUs. If you have 100 VMs having 1 vCPU each with 10% utilization, you are good, since you are at 41.67% on the host. If each VM suddenly needs 25%, it will not be possible, since this resource is now oversubscribed. The answer to your question is - It depends on the workload. Start with a decent number of VMs and plan to add incrementally until the utilization is fairly high while still retaining some room for peaks.
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