Consider the diagram below -
VMware NSX
Tier-1 router does not have route advertisement allowed for 'All Connected Segments and Service ports' so Tier-0 routing table does not have route to destination VM network.
Here is an example of Tier-1 connected route learnt in Tier-0. This can be verified from edge CLI.
edge01> get logical-routers
edge01> vrf 2
edge(tier0_sr[2])> get route
Flags: t0c - Tier0-Connected, t0s - Tier0-Static, b - BGP, o - OSPF
t0n - Tier0-NAT, t1s - Tier1-Static, t1c - Tier1-Connected,
t1n: Tier1-NAT, t1l: Tier1-LB VIP, t1ls: Tier1-LB SNAT,
t1d: Tier1-DNS FORWARDER, t1ipsec: Tier1-IPSec, isr: Inter-SR,
ivs: Inter-VRF-Static, > - selected route, * - FIB route
Total number of routes: #
t1c> * 172.16.#.#/24 [3/0] via 100.64.#.#, linked-297, 6d20h25mEdit Tier-1 configuration and enable route advertisement for 'All Connected Segments and Service ports'.
If you don't want to advertise all connected routes, you can specify which routes to advertise.