You see an error similar to the following when configuring an ESXi host transport node with multiple overlay transport zones:
HostSwitch <HostSwitch ID> cannot participate in more than one OVERLAY transport zone, existing TZ [<existing TZ ID>] new TZ [<new TZ ID>]. (Error code: 9503)
VMware NSX 4.x
Using multiple overlay transport zones on an ESXi host transport node has never been supported. The check for this condition was not added until the 4.x version of VMware NSX.
Only one vdl2 instance is created per HostSwitch so it can span over only one Overlay Transport Zone.
Not supported configuration