In Cisco ACI, integrating with a VMware vSphere environment using a VMware Distributed Virtual Switch (DVS) requires creating a Virtual Machine Manager (VMM) domain association under the Endpoint Groups (EPGs). This allows the ACI fabric to extend its policy model to the virtual environment managed by vSphere. The encapsulation VLAN of the EPG is then assigned from a VLAN pool. To ensure that the VLANs are dynamically allocated and can be managed efficiently, a VLAN pool with dynamic allocation should be used. This setup allows for automated management of VLANs and avoids conflicts or manual errors in VLAN assignment.