Really? Or are you just kidding? :w00t:
What was the question about?
Guessing whether it is physical/virtual machine or capacity limits?
You don't have to guess, it clearly states "You have a physical server with 12 physical cores placed in two sockets..."
Either way explanation is flawed - virtual machine can use 16 virtual processors and it does not matter whether they are hyper-threaded or not (virtual machine is not aware of that).
For the virtual machines it is different.There, the maximum number of logical processors the Standard edition of 2014 can use is 16.
At VMs, virtual processors are logical processors, that's all. What is not clear here?
In this case logical processors are taken for virtual processors but that is not always true.
Please tell here when it's not always true. That's the point of the QotT in this site.