My confusion is, in case of a DVS do I have to enable Jumbo frames at Switch and VMkernal port level or does the switch level setting over-ride whats set at VMKernel port?
the way it works is, if you want Jumbo frames to be enabled for all the ports and port groups in your DVS, just do this setup at DVS level. Let's say this is kind of switch wide setting.
alternatively you can set it up per VMKernel Port basis too if you wish. I would say, settings done at Switch Wide can be over-ridden at Port level.