This issue is resolved in i40en_ens driver 1.2.7:
To workaround the issue if you cannot upgrade, disable TSO in the affected VMs.
For Linux VMs, you can disable TSO with the following command:
ethtool -K ethY tso off
To re-enable TSO once you have installed the updated driver:
ethtool -K ethY tso on
To disable TSO for Windows VM, refer to Manage TSO on a Windows Virtual Machine.