NSX host configuration fails with "Partial Success" and "InvalidArgument" errors due to invalid vSwitch network policy

Products

• VMware NSX
• VMware vSphere ESXi

Issue/Introduction

• An ESXi host shows an "out of sync" status in the NSX Manager UI.
• The host configuration status is listed as "Partial Success."
• Upon reviewing the error details, the following message is observed:

  Host configuration: DefaultGateway [172.#.#.#] failed to be applied: Failed to update vxlan default gateway: {'fault': 'InvalidArgument', 'msg': 'A specified parameter was not correct: ', 'faultMessage': []}

• The following errors are observed in /var/run/log/hostd.log:

  Invalid NIC teaming policy: invalid NIC order specified.

  Invalid network policy: invalid NIC teaming policy.

  Cannot set policy for vswitch [vSwitch#], network policy is invalid: (vim.host.NetworkPolicy)

Environment

VMware NSX

VMware vSphere

Cause

This issue is caused by an invalid vim.host.NetworkPolicy on a standard vSwitch. The vSwitch is configured without a physical vNIC (uplink) assigned, or the NIC teaming order is invalid. Because NSX requires a valid network policy to apply VTEP and Gateway settings, the configuration fails with an InvalidArgument fault when you attempt to push policy to a switch that has no valid physical backing. This prevents the host from establishing proper VXLAN/Geneve tunnel endpoints.

This is a known configuration limitation where NSX cannot override or repair an underlying invalid vSphere standard switch policy. Always ensure physical uplinks are mapped correctly before you attempt to move a host into an NSX Transport Node state.

Resolution

To resolve this issue, manually correct the vSwitch uplink configuration on the affected ESXi host:

1. Log in to vCenter Server or the ESXi Host Client.
2. Navigate to the Host > Configure > Networking > Virtual switches tab.
3. Identify the vSwitch mentioned in the logs (e.g., vSwitch#).
4. Click Edit on the vSwitch settings.
5. Under Teaming and failover, ensure that at least one physical adapter (e.g., vmnic#) is assigned as an Active Uplink.
6. Ensure the vNIC being assigned is not already in use by another vSwitch (such as the management vSwitch#).
7. Once the vSwitch policy is valid, log in to the NSX Manager UI.
8. Navigate to System > Fabric > Nodes > Host Transport Nodes.
9. Select the affected host and click Clear Error or Resolve.
10. Verify that the host status changes to Success and the configuration state is Up.

Additional Information

Additional reference and link to a similar issue, KB NSX transport node is in partial success state with error "Host configuration: DefaultGateway [#.#.#.#] Failed to be applied: Failed to update vxlan default gateway".d