In NSX-T versions prior to 3.2.1, the edge allocates enough egress packet buffer to account for the GRE header and IPsec header, but not for GENEVE header when packet source is the edge itself (i.e. DR interface).
When packets sourced from a remote transport node ingress on the edge via GENEVE encapsulation, the egress packet buffer accounts for the GENEVE header appropriately (i.e. ingress packet buffer influences egress packet buffer size). The problem occurs when the packets egress from the edge with GENEVE encapsulation and are sourced from a DR interface inside the same edge as the L2VPN tunnel endpoint. In this scenario, IP traffic sourced inside the edge requires GRE encapsulation, IPsec encapsulation and GENEVE encapsulation. The egress packet buffer does not allocate enough buffer for all of the headers, thus the edge drops the packet on egress. Specifically, the GENEVE header space is not accounted for.