It looks like the VM is in ZTP mode. ZTP (Zero Touch Provisioning) is used for automatic provisioning/configuration of the switch which involves IP assignment with DHCP server and configuration from a ZTP server. The below documents gives you details on the ZTP process:
If you are testing with VMs and do not need ZTP, you can disable it by using the command: "zerotouch cancel". Note that this will reboot the switch.
Hope this helps.
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