When running locally DCs do not fail over. They are local VMs without failover capability: their storage is LOCAL and compute resources are not clustered, hence failover is not possible by design. One of them is primary another is secondary. They ARE to be out of the cluster as the failover cluster...

StarWind VSAN does not require the domain controller. The cluster does need them though for proper functioning. 2 local VMs running on the local host storage as described here https://knowledgebase.starwindsoftware.com/explanation/advice-on-how-to-place-a-domain-controller-in-case-of-starwind-virtu...

I'm looking to design a 2 node HyperConverged Starwind vSAN setup but would like to avoid the use of physical domain controllers as this would add additionally unwanted hardware/management/.... Now sadly live Hyper-V requires kerberos for Live Migration so there's no way out of not using Active Dire...