Unfortunately, yes. They are aware inside of them, unless sleeping. It's why some pokémon will burst from their pokéball to come to their partner's aid in some situations if inside of one at the time.

[Unless there was something more about the machine- but given the fact it seemed to act like the Boxes system, well...

A slow shake of his head.]

No, what happens beforehand does. Them accepting someone, wanting to be their partner. Deeming them worthy in whatever way the pokémon has decided to test them, otherwise they will not stay within the ball. Unless, of course, it was never a wild pokémon in the first place, and hatched from an egg in someone's possession.

[Abomasnow seemed to look at the vending machine briefly, before taking a step closer to the other mean, leaning over so those large purple eyes were level with both him and his Eevee. Calmly, curiously.]

Because they wish to be at my side. I have others that are at my home currently, as a few wanted to come with me today- Houndoom and Abomasnow here, along with Litten. I've another, still within their ball.

[Rather than carrying a full team of six, plus the others he had here. They didn't all need to be on his person.]