Symptoms:
Based on the diagram above, lets assume you have:
You can ping the DLR lif which is the default gateway for VM1.
However, when you try to ping the internal interface of the ESG from VM1, it is unsuccessful unless the ESG is on the same ESXi host as VM1.
VMware NSX for vSphere 6.2.x
VMware NSX for vSphere 6.3.x
VMware NSX for vSphere 6.4.x
This happens if the VLAN which is used by VXLAN (check the logical network preparation tab under Installation) as shown below isn't trunked through all the uplinks on both ESXi hosts or isn't stretched across the physical network end-to-end between them:
To resolve this issue:
Ensure that the physical network between these two ESXi hosts (one on which the VM resides and the other on which the ESG resides, have that VLAN (110 in the example above) configured end to end on all the uplinks used by the ESXi host for the VXLAN-prepared DVSwitch .