Login to Public Cloud > Select Host 1 > Configure > Networking > Virtual switches > click ADD NETWORKING…

Select Virtual Machine Port Group for Standard Switch

Next, Select target device > make sure select New standard switch > MTU leave as default 1500

Next, Create a Standard Switch leave as default without adapters and click NEXT

Next, it will prompt there are no active physical network adapters for the switch, ignored and click OK

Next, enter the customer Network Label (Case Sensitive)

Click NEXT, done.
To verify the vSwitch you created go to Networking > Virtual switches
Make sure Physical Adapters is empty

Please repeat the above step with same Network label on host 2 or host within same cluster.
PS: Network label need to be same because when host 1 failover or migrate to host 2 or other host, VM network need to identify migration-compatible to make sure connectivity is working fine after failover or migrate