Further checks confirmed issue with Global manager unable to lookup the impacted Local Manager's FQDN.
/var/log/syslog
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<Timestamp><GM> NSX 5554 - [nsx@6876 comp="global-manager" level="WARNING" subcomp="site-manager"] Unable to resolve ip <Local_Manager_IP_address> to fqdn.
<Timestamp><GM> NSX 3211 - [nsx@6876 comp="global-manager" subcomp="node-mgmt" username="root" level="WARNING"] Unable to resolve ip <Local_Manager_IP_address> to fqdn.
VMware NSX
Missing DNS entries for Local managers, as Global manager was not able to resolve the FQDN of Local manager, due to which GM(Global Manager) to LM(Local Manager) nslookup was failing.
Kindly ensure, DNS nslookup is working from GM(Global manager) to LM (Local manager).