MAC conflict: A port on the virtual switch has the same MAC as one of the underlying team members on Team Nic Microsoft Network Adapter Multiplexor Driver

We are receiving the following on a Windows 2016 server VM host - does anyone know what this means?:

Log Name:      System
Source:        Microsoft-Windows-MsLbfoSysEvtProvider
Date:          26/10/2017 07:37:20
Event ID:      16945
Task Category: None
Level:         Warning
Keywords:      Classic
User:          N/A
Computer:      servername.domain.suffix
Description:
MAC conflict: A port on the virtual switch has the same MAC as one of the underlying team members on Team Nic Microsoft Network Adapter Multiplexor Driver
Event Xml:
<Event xmlns="http://schemas.microsoft.com/win/2004/08/events/event">
  <System>
    <Provider Name="Microsoft-Windows-MsLbfoSysEvtProvider" Guid="{387ed463-8b1b-42c9-9ef0-803fdfd5d94e}" EventSourceName="MsLbfoProvider" />
    <EventID Qualifiers="32768">16945</EventID>
    <Version>0</Version>
    <Level>3</Level>
    <Task>0</Task>
    <Opcode>0</Opcode>
    <Keywords>0x80000000000000</Keywords>
    <TimeCreated SystemTime="2017-10-26T06:37:20.210297100Z" />
    <EventRecordID>417280</EventRecordID>
    <Correlation />
    <Execution ProcessID="4" ThreadID="6356" />
    <Channel>System</Channel>
    <Computer>servername.domain.suffix</Computer>
    <Security />
  </System>
  <EventData>
    <Data Name="DriverObject">
    </Data>
    <Data Name="Member">Microsoft Network Adapter Multiplexor Driver</Data>
  </EventData>
</Event>

Obviously there is a MAC address conflict but what action should we take without interrupting any host connectivity?

The fact that the Hyper-V host maps ARP traffic to the VM machines onboard means that in order to successfully route the layer 2 traffic, the host MAC address must match the VM machines MAC addresses within.

As a result this is normal behaviour and is nothing to be too concerned about.

A new team NIC team will have a certain unique MAC address that any VMs on that host (that are using that NIC as their external gateway) will inherit that same MAC address (the server's physical network card interface address) and that is what causes the error.

You can view which NIC team is responsible with this command:  Get-NetAdapter | sort MacAddress

The solution (in order to prevent this message appearing again) is to manually change the MAC address of the new team, making sure that it does not interfere with any other MAC addresses. This will mean that there is a brief period of downtime whilst the ARP protocol on the network switch figures out that the IP address now is coupled with a new MAC address.

In the "Team" created, it inherited the same MAC address Interface "NIC1"

To alter the MAC address you will need to open the Device Manager under Control Panel, and then expand Network Adapters.
From here select the Network Adapter named 'Microsoft Network Adapter Multiplexor' and go to the driver tab and click properties.

Now you will need to click Advanced and find MAC Address in the list. You will see that the current setting is Not Present which you will need to change to Value.
Now you must enter a new 12 character alphanumeric MAC address.