After upgrading from NSX 3.2.0 to 3.2.4.1, VMs on a NSX DVS are showing working and unable to ping to other VMs.
There is no ARP rely from the VM.
When performing a traceflow on NSX, the MAC address needs to be manually changed to the correct MAC for the packet to be delivered.
Ran pktcap-uw --switchport <switchport-ID> --trace
This is a 3rd party virtual router VM connected to overlay segment.
It appears that after upgrade from NSX 3.# to 4.# that MAC learning settings were not transferred to the segment.
Enable MAC learning on the segment that is plugged into the 3rd party virtual router