The number of T0/T1 Service routers ... has exceeded the maximum threshold of 98%".Though the Gateway Firewall state is still shown as "ON" in NSX, the rules that are added/removed from it decides whether firewall is applied on traffic/not
This is expected behavior. When the firewall is disabled in VCD, no rules are applied. Conversely, when it is enabled, rules take effect regardless of the toggle state in NSX.
This issue is resolved in VMware Cloud Director 10.6.1.2 as per the release notes.
For product download instructions, see Download Broadcom products and software.
For more information regarding the error in NSX. See Service Router Limit Per Edge Exceeded - Critical Alert: "The number of T0/T1 Service routers ... has exceeded the maximum threshold of 98%"