VMware NSX 4.x
ESXi 8.0U3
Cisco UCS Hardware
Palo Alto Firewall VM
The physical NIC or network fabric is likely mishandling TCP checksums for traffic that originates outside the NSX domain and is then encapsulated into Geneve to reach a different host.
Run the following command to check if the issue is caused by the NIC HW Geneve offload by switching to software simulation of Geneve offload:esxcli network nic software set --vmnic=vmnicX --geneveoffload 1
If the issue goes away with the software simulation, it indicates that there is an issue with the NIC drivers. However, if the issue persists then, it is external to the ESXi hosts/NIC drivers and points towards the physical NIC or network fabric.