VDS Port Binding Best Practices / Auto Grow Enable switch

When choosing a port binding type, consider how you want to connect your virtual machines and virtual network adapters to a vDS and how you intend to use your virtual machines. Port binding type, along with all other vDS and port group configuration, can be set only through vCenter Server.

VMware Reference Link 

Static binding

When you connect a virtual machine to a port group configured with static binding, a port is immediately assigned and reserved for it, guaranteeing connectivity at all times. The port is disconnected only when the virtual machine is removed from the port group. You can connect a virtual machine to a static-binding port group only through vCenter Server.

Note: Static binding is the default setting, recommended for general use.

Dynamic binding

In a port group configured with dynamic binding, a port is assigned to a virtual machine only when the virtual machine is powered on and its NIC is in a connected state. The port is disconnected when the virtual machine is powered off or the virtual machine's NIC is disconnected. Virtual machines connected to a port group configured with dynamic binding must be powered on and off through vCenter.

Dynamic binding can be used in environments where you have more virtual machines than available ports, but do not plan to have a greater number of virtual machines active than you have available ports. For example, if you have 300 virtual machines and 100 ports, but never have more than 90 virtual machines active at one time, dynamic binding would be appropriate for your port group.

Note: Dynamic binding is deprecated from ESXi 5.0, but this option is still available in vSphere Client. It is strongly recommended to use Static Binding for better performance.

Ephemeral binding

In a port group configured with ephemeral binding, a port is created and assigned to a virtual machine by the host when the virtual machine is powered on and its NIC is in a connected state. The port is deleted when the virtual machine is powered off or the virtual machine's NIC is disconnected.

You can assign a virtual machine to a distributed port group with ephemeral port binding on ESX/ESXi and vCenter, giving you the flexibility to manage virtual machine connections through the host when vCenter is down. Although only ephemeral binding allows you to modify virtual machine network connections when vCenter is down, network traffic is unaffected by vCenter failure regardless of port binding type.