For internet bound route (default route), the cloud gateway will advertise a default route to edge. So, the cloud traffic will go via gateway. But if the business policy says, internet traffic to go direct, the business policy will override the route policy and the traffic will choose the direct path instead of gateway path.
If the path from edge to primary gateway goes down, the cloud traffic will go direct. It will not choose the secondary gateway path (because by design, only primary cloud gateway will advertise the default route to VCE but not from secondary gateway)
Partner Gateway:
If any of the partner gateways (which we explicitly define) do not advertise any default route, the cloud traffic will choose direct path.
If the partner gateways advertise a non-secure default route (let's say PBR route), then the route selection will be same as that of Cloud gateway (as mentioned in above section)
If the partner gateways advertise a Secure default route (let's say PSBR), then the cloud traffic will always choose the gateway path irrespective of business policy saying direct.
As both the partner gateways advertise a default route to VCE, if the path from edge to Primary gateway goes down (the highest order in the route table goes down), the cloud traffic will choose the secondary gateway path (the second best default route is chosen)
Environment
VMware SD-WAN by VeloCloud
Resolution
If primary gateway goes down, cloud traffic will go direct, however VPN traffic like ( Site to Site ) Traffic will use Secondary gateway.