When a virtual machine is created, it is assigned a certain number of vCPUs. These vCPUs are then distributed across the available threads of the physical CPU.
Yes, you can assign more vCPUs to a VM than the number of physical cores you have, but with some considerations.
For example, if your CPU has 4 threads and you give the VM 6 vCPUs — this is called CPU overselling.
If the VM at some point starts using all its assigned vCPUs, this will cause delays, because as mentioned above, the hypervisor distributes them across the available physical threads. Additionally, do not forget that the host operating system itself also uses CPU resources.
Here is an example:
The hypervisor has 46 vCPUs allocated while having 40 physical threads available.