I don't see a real issue with this setup and it should work just fine.
Let's put this together:
Physical Switch Port:
This is a tagged port with VLAN 1 (native) and VLAN 10 allowed.
vSwitch:
Management Port: Group: no VLAN Tag defined, because tagging of VLAN1 is done by the physical switch
vMotion Port Group: VLAN 10 configured to send and receive tagged packages
Is this how you set this up?
André