An administrator creates a Prism Central storage policy with compression and encryption and associates it with the category App:Web. Afterward, some new VMs are created with the App:Web category and others are created without it, all on the same container. Which outcome should be expected?

Prism Central storage policies are scoped by categories, not by containers. When a policy is associated with a category such as App:Web, every VM that carries that category value is covered by the policy, and the policy applies to all of that VM's disks, whether they were added at creation or later. VMs without the category are not covered and continue to follow the settings of the container their disks live on. There is no container default storage policy object; container settings and Prism Central storage policies are separate layers, and an associated policy takes precedence for the VMs it covers. That is why the claim that every VM on the container adopts the policy is wrong: the container is not the scope. Applying the policy only to the first disk of each VM is wrong because a policy covers the whole VM. Limiting it to volume group disks is wrong because the association works through VM categories, and VM disks are covered normally. Exam caveat: to change behavior for an existing VM, add or change its category rather than editing the container, and remember that some settings, such as encryption, have prerequisites at the cluster level. Operational check: open the storage policy in Prism Central, review the list of associated VMs, and confirm a VM without the category does not appear.