Basically what I understand now is a virtual processor is like a slice of time in relation to all of the logic processor available.
You can see how many logic processors are available in task manager on the Performance Tab>CPU
When licensing a SQL server for example though the core license is in relation to the virtual processor. So if I purchased SQL server standard 2019 4 core license then I can only allocate 4 virtual processors for that virtual server
I had it all wrong and was allocating way too many virtual processors per VM
I played around with 1-8 virtual processors per VM depending on workload and tweaked virtual machine reservation, limits, and weight to create a kind of “QoS” and saw a great performance increase.