Issue is observed when the following conditions are met:
Loss of connectivity occurs as follows:
Topology:
When the Gateway Connectivity option is disabled, this also disables the cross-location GM_Stretched-Segment communication (VMs at NSX-T site-A cannot communicate to VMs at NSX-T Site-B).
This behavior of NSX-T Federation will be changed in a future release of NSX.
Disable the default gateway on NSX-v instead of NSX-T
Procedure
Bridging a Federated Segment for the Migration:
https://docs.vmware.com/en/VMware-NSX-T-Data-Center/3.2/migration/GUID-AC7335D9-C475-4003-A379-749968428955.html
Features and Configurations Supported in NSX Federation:
https://docs.vmware.com/en/VMware-NSX-T-Data-Center/3.2/administration/GUID-29998FC5-C1AB-40BC-B669-6E8E9937F345.html