In an overlay network with GENEVE configuration, low throughput and spikes in CPU usage may be observed for VM workloads because LRO (Large Receive Offloads) aggregation does not occur in the HW.
LRO (aggregation) doesn’t occur in this configuration, because GENEVE packets have GENEVE Options present in the packet header. Changes were made in VMWare NSX-T, where GENEVE Options are now present in the GENEVE header. Due to a limitation in NIC FW, qedentv driver doesn't support TPA (LRO) for packets with GENEVE options present in the header. However, TPA (LRO) is supported with GENEVE packets without the Options in the header.
This is not a bug, but a limitation within the NIC FW. The absence of TPA (LRO) is due to the nature of the system configuration i.e., Geneve packets with Options.