Hello Haziq,
The physical switch configuration is the first thing I would correct. Switch Embedded Teaming (SET) supports only Switch Independent teaming mode; Set-VMSwitchTeam exposes SwitchIndependent as the only supported teaming mode. Therefore, the physical switch ports connected to the SET members should not be configured as a static LAG/LACP port channel.
Configure the upstream switch ports as independent ports, while keeping the required VLAN/trunk configuration consistent on each port. Then verify the SET configuration and physical adapters:
Get-VMSwitchTeam -Name "YourSETvSwitch" | Format-List * Get-NetAdapter | Format-Table Name,Status,LinkSpeed,InterfaceDescription Get-NetAdapterStatistics
You can also verify or explicitly configure the load-balancing algorithm with:
Set-VMSwitchTeam -Name "YourSETvSwitch" -TeamingMode SwitchIndependent ` -LoadBalancingAlgorithm Dynamic
Dynamic and HyperVPort are load-balancing choices, but neither changes the requirement that SET operates in Switch Independent mode.
Since Event Viewer and the switch logs show ports changing state without a physical link loss, remove the static aggregation configuration first and monitor again. If the issue continues afterward, I would then investigate NIC driver/firmware versions, switch logs, VLAN configuration, and the output of Get-VMSwitchTeam rather than treating it as a physical-link failure.
https://learn.microsoft.com/en-us/powershell/module/hyper-v/set-vmswitchteam?view=windowsserver2025-ps