diff --git a/hypervisor/arch/x86/configs/vm_config.c b/hypervisor/arch/x86/configs/vm_config.c
index 54be51a8a..be947309c 100644
--- a/hypervisor/arch/x86/configs/vm_config.c
+++ b/hypervisor/arch/x86/configs/vm_config.c
@@ -36,17 +36,3 @@ bool vm_has_matched_name(uint16_t vmid, const char *name)
 
 	return (strncmp(vm_config->name, name, MAX_VM_NAME_LEN) == 0);
 }
-
-uint16_t get_unused_vmid(void)
-{
-	uint16_t vm_id;
-	struct acrn_vm_config *vm_config;
-
-	for (vm_id = 0; vm_id < CONFIG_MAX_VM_NUM; vm_id++) {
-		vm_config = get_vm_config(vm_id);
-		if (vm_config->name[0] == '\0') {
-			break;
-		}
-	}
-	return (vm_id < CONFIG_MAX_VM_NUM) ? (vm_id) : (ACRN_INVALID_VMID);
-}
diff --git a/hypervisor/arch/x86/guest/vm.c b/hypervisor/arch/x86/guest/vm.c
index 2dc5c18a5..ff2c4ed73 100644
--- a/hypervisor/arch/x86/guest/vm.c
+++ b/hypervisor/arch/x86/guest/vm.c
@@ -57,20 +57,30 @@ void *get_sworld_memory_base(void)
 	return post_user_vm_sworld_memory;
 }
 
-uint16_t get_vmid_by_name(const char *name)
+uint16_t get_unused_vmid(void)
 {
-	uint16_t vm_id = ACRN_INVALID_VMID;
-	uint16_t matched_cnt = 0;
+	uint16_t vm_id;
+	struct acrn_vm_config *vm_config;
 
-	/* check if there are duplicate VM names in vm configurations */
-	for (uint16_t idx = 0U; idx < CONFIG_MAX_VM_NUM; idx++) {
-		if ((*name != '\0') && vm_has_matched_name(idx, name)) {
-			matched_cnt++;
-			vm_id = (matched_cnt > 1) ? (ACRN_INVALID_VMID) : (idx);
+	for (vm_id = 0; vm_id < CONFIG_MAX_VM_NUM; vm_id++) {
+		vm_config = get_vm_config(vm_id);
+		if ((vm_config->name[0] == '\0') && ((vm_config->guest_flags & GUEST_FLAG_STATIC_VM) == 0U)) {
+			break;
 		}
 	}
+	return (vm_id < CONFIG_MAX_VM_NUM) ? (vm_id) : (ACRN_INVALID_VMID);
+}
 
-	return vm_id;
+uint16_t get_vmid_by_name(const char *name)
+{
+	uint16_t vm_id;
+
+	for (vm_id = 0U; vm_id < CONFIG_MAX_VM_NUM; vm_id++) {
+		if ((*name != '\0') && vm_has_matched_name(vm_id, name)) {
+			break;
+		}
+	}
+	return (vm_id < CONFIG_MAX_VM_NUM) ? (vm_id) : (ACRN_INVALID_VMID);
 }
 
 /**
@@ -164,6 +174,16 @@ bool is_vcat_configured(const struct acrn_vm *vm)
 	return ((vm_config->guest_flags & GUEST_FLAG_VCAT_ENABLED) != 0U);
 }
 
+/**
+ * @pre vm != NULL && vm_config != NULL && vm->vmid < CONFIG_MAX_VM_NUM
+ */
+bool is_static_configured_vm(const struct acrn_vm *vm)
+{
+	struct acrn_vm_config *vm_config = get_vm_config(vm->vm_id);
+
+	return ((vm_config->guest_flags & GUEST_FLAG_STATIC_VM) != 0U);
+}
+
 /**
  * @brief VT-d PI posted mode can possibly be used for PTDEVs assigned
  * to this VM if platform supports VT-d PI AND lapic passthru is not configured
@@ -792,8 +812,8 @@ int32_t shutdown_vm(struct acrn_vm *vm)
 	/* after guest_flags not used, then clear it */
 	vm_config = get_vm_config(vm->vm_id);
 	vm_config->guest_flags &= ~DM_OWNED_GUEST_FLAG_MASK;
-	if ((vm_config->guest_flags & GUEST_FLAG_DYN_VM_CFG) != 0UL) {
-		memset(vm_config, 0U, sizeof(struct acrn_vm_config));
+	if (!is_static_configured_vm(vm)) {
+		memset(vm_config->name, 0U, MAX_VM_NAME_LEN);
 	}
 
 	if (is_ready_for_system_shutdown()) {
@@ -935,12 +955,11 @@ void prepare_vm(uint16_t vm_id, struct acrn_vm_config *vm_config)
 #ifdef CONFIG_SECURITY_VM_FIXUP
 	security_vm_fixup(vm_id);
 #endif
-	if (get_vmid_by_name(vm_config->name) == ACRN_INVALID_VMID) {
+	if (get_vmid_by_name(vm_config->name) != vm_id) {
 		pr_err("Invalid VM name: %s", vm_config->name);
 		err = -1;
-	}
-	/* Service VM and pre-launched VMs launch on all pCPUs defined in vm_config->cpu_affinity */
-	if (err == 0) {
+	} else {
+		/* Service VM and pre-launched VMs launch on all pCPUs defined in vm_config->cpu_affinity */
 		err = create_vm(vm_id, vm_config->cpu_affinity, vm_config, &vm);
 	}
 
diff --git a/hypervisor/arch/x86/guest/vmcall.c b/hypervisor/arch/x86/guest/vmcall.c
index b8df281b2..688c69f93 100644
--- a/hypervisor/arch/x86/guest/vmcall.c
+++ b/hypervisor/arch/x86/guest/vmcall.c
@@ -116,9 +116,7 @@ uint16_t allocate_dynamical_vmid(struct acrn_vm_creation *cv)
 	if (vm_id != ACRN_INVALID_VMID) {
 		vm_config = get_vm_config(vm_id);
 		memcpy_s(vm_config->name, MAX_VM_NAME_LEN, cv->name, MAX_VM_NAME_LEN);
-		vm_config->guest_flags = (cv->vm_flag | GUEST_FLAG_DYN_VM_CFG);
 		vm_config->cpu_affinity = cv->cpu_affinity;
-		vm_config->load_order = POST_LAUNCHED_VM;
 	}
 	spinlock_release(&vm_id_lock);
 	return vm_id;
@@ -143,12 +141,12 @@ struct acrn_vm *parse_target_vm(struct acrn_vm *service_vm, uint64_t hcall_id, u
 			 */
 			if (vm_id == ACRN_INVALID_VMID) {
 				vm_id = allocate_dynamical_vmid(&cv);
-			}
-			/* it doesn't find the available vm_slot for the given vm_name.
-			 * Maybe the CONFIG_MAX_VM_NUM is too small to start the VM.
-			 */
-			if (vm_id == ACRN_INVALID_VMID) {
-				pr_err("The VM name provided (%s) is invalid, cannot create VM", cv.name);
+				/* it doesn't find the available vm_slot for the given vm_name.
+				 * Maybe the CONFIG_MAX_VM_NUM is too small to start the VM.
+				 */
+				if (vm_id == ACRN_INVALID_VMID) {
+					pr_err("The VM name provided (%s) is invalid, cannot create VM", cv.name);
+				}
 			}
 		}
 		break;
diff --git a/hypervisor/common/hypercall.c b/hypervisor/common/hypercall.c
index 10b157ca6..6fc18a671 100644
--- a/hypervisor/common/hypercall.c
+++ b/hypervisor/common/hypercall.c
@@ -259,6 +259,7 @@ int32_t hcall_create_vm(struct acrn_vcpu *vcpu, struct acrn_vm *target_vm, uint6
 		if (is_poweroff_vm(get_vm_from_vmid(vmid))) {
 
 			/* Filter out the bits should not set by DM and then assign it to guest_flags */
+			vm_config->guest_flags &= ~DM_OWNED_GUEST_FLAG_MASK;
 			vm_config->guest_flags |= (cv.vm_flag & DM_OWNED_GUEST_FLAG_MASK);
 
 			/* post-launched VM is allowed to choose pCPUs from vm_config->cpu_affinity only */
@@ -298,9 +299,8 @@ int32_t hcall_create_vm(struct acrn_vcpu *vcpu, struct acrn_vm *target_vm, uint6
 
 	}
 
-	if (((ret != 0) || (cv.vmid == ACRN_INVALID_VMID))
-			&& (vm_config->guest_flags & GUEST_FLAG_DYN_VM_CFG) != 0UL) {
-		memset(vm_config, 0U, sizeof(struct acrn_vm_config));
+	if (((ret != 0) || (cv.vmid == ACRN_INVALID_VMID)) && (!is_static_configured_vm(target_vm))) {
+		memset(vm_config->name, 0U, MAX_VM_NAME_LEN);
 	}
 
 	return ret;
diff --git a/hypervisor/include/arch/x86/asm/guest/vm.h b/hypervisor/include/arch/x86/asm/guest/vm.h
index e08a1a644..c3d9d8d2d 100644
--- a/hypervisor/include/arch/x86/asm/guest/vm.h
+++ b/hypervisor/include/arch/x86/asm/guest/vm.h
@@ -257,6 +257,8 @@ bool is_lapic_pt_configured(const struct acrn_vm *vm);
 bool is_rt_vm(const struct acrn_vm *vm);
 bool is_nvmx_configured(const struct acrn_vm *vm);
 bool is_vcat_configured(const struct acrn_vm *vm);
+bool is_static_configured_vm(const struct acrn_vm *vm);
+uint16_t get_unused_vmid(void);
 bool is_pi_capable(const struct acrn_vm *vm);
 bool has_rt_vm(void);
 struct acrn_vm *get_highest_severity_vm(bool runtime);
diff --git a/hypervisor/include/arch/x86/asm/vm_config.h b/hypervisor/include/arch/x86/asm/vm_config.h
index 640125557..edd1a1019 100644
--- a/hypervisor/include/arch/x86/asm/vm_config.h
+++ b/hypervisor/include/arch/x86/asm/vm_config.h
@@ -37,19 +37,19 @@
 #define CONFIG_SERVICE_VM	.load_order = SERVICE_VM,	\
 				.severity = SEVERITY_SERVICE_VM
 
-#define CONFIG_SAFETY_VM(idx)	.load_order = PRE_LAUNCHED_VM,	\
+#define CONFIG_SAFETY_VM	.load_order = PRE_LAUNCHED_VM,	\
 				.severity = SEVERITY_SAFETY_VM
 
-#define CONFIG_PRE_STD_VM(idx)	.load_order = PRE_LAUNCHED_VM,	\
+#define CONFIG_PRE_STD_VM	.load_order = PRE_LAUNCHED_VM,	\
 				.severity = SEVERITY_STANDARD_VM
 
-#define CONFIG_PRE_RT_VM(idx)	.load_order = PRE_LAUNCHED_VM,	\
+#define CONFIG_PRE_RT_VM	.load_order = PRE_LAUNCHED_VM,	\
 				.severity = SEVERITY_RTVM
 
-#define CONFIG_POST_STD_VM(idx)	.load_order = POST_LAUNCHED_VM,	\
+#define CONFIG_POST_STD_VM	.load_order = POST_LAUNCHED_VM,	\
 				.severity = SEVERITY_STANDARD_VM
 
-#define CONFIG_POST_RT_VM(idx)	.load_order = POST_LAUNCHED_VM,	\
+#define CONFIG_POST_RT_VM	.load_order = POST_LAUNCHED_VM,	\
 				.severity = SEVERITY_RTVM
 
 /* ACRN guest severity */
@@ -201,7 +201,6 @@ struct acrn_vm_config {
 struct acrn_vm_config *get_vm_config(uint16_t vm_id);
 uint8_t get_vm_severity(uint16_t vm_id);
 bool vm_has_matched_name(uint16_t vmid, const char *name);
-uint16_t get_unused_vmid(void);
 
 extern struct acrn_vm_config vm_configs[CONFIG_MAX_VM_NUM];
 
diff --git a/hypervisor/include/public/acrn_common.h b/hypervisor/include/public/acrn_common.h
index 99d559249..c1bb8a982 100644
--- a/hypervisor/include/public/acrn_common.h
+++ b/hypervisor/include/public/acrn_common.h
@@ -58,7 +58,7 @@
 #define GUEST_FLAG_NVMX_ENABLED			(1UL << 5U)	/* Whether this VM supports nested virtualization */
 #define GUEST_FLAG_SECURITY_VM			(1UL << 6U)	/* Whether this VM needs to do security-vm related fixup (TPM2 and SMBIOS pt) */
 #define GUEST_FLAG_VCAT_ENABLED			(1UL << 7U)	/* Whether this VM supports vCAT */
-#define GUEST_FLAG_DYN_VM_CFG       (1UL << 8U)  /* Whether this VM uses dynamic VM configuration */
+#define GUEST_FLAG_STATIC_VM       (1UL << 8U)  /* Whether this VM uses static VM configuration */
 
 /* TODO: We may need to get this addr from guest ACPI instead of hardcode here */
 #define VIRTUAL_SLEEP_CTL_ADDR		0x400U /* Pre-launched VM uses ACPI reduced HW mode and sleep control register */