Avi Service Engine does not support loopback requests.
Use Case:
1) Ping/Telnet/Netcat would not work for the VS IP from the SE namespace.
2) When using Virtual Service as a pool member in a different virtual service placed on the same SE. The pool member will be marked down.
In the below screenshot, we can see the Virtual Service is up on port 80.
But when using the VS IP as a pool member, it is marked down by the health monitor.
If using a virtual service IP as a pool member, create the virtual service in a different/new service engine group.