Currently using Microsoft network load balancer (NLB) in unicast or Multicast mode is unsupported on NSX overlay:
- In Multicast mode, It should work if clients and NLB VIP are connected to the same segment but not for routed traffic (which would require a static ARP entry which is not supported).
- When deployed in unicast mode, Microsoft NLB overwrites the physical MAC addresses of participating nodes with a unified cluster MAC address. Consequently, NSX experiences MAC learning conflicts across multiple VM segment ports, preventing the network switch from accurately determining port-to-MAC associations.