When attempting to create a Service Mesh in VMware HCX, the deployment fails during the Interconnect Service workflow.
Error: Interconnect Service Workflow ValidateRemoteServiceMesh failed. Error: Unable to find Transport Nodes for vCenterId <UUID>
VMware HCX
The target cluster defined within the Compute Profile lacks the required NSX Overlay configuration; it is either entirely unconfigured for NSX, designated as "Security Only," or restricted strictly to a VLAN Transport Zone.
The NSX Overlay Transport Zone is a mandatory prerequisite for the HCX Network Extension service to establish its data path, if missing the Interconnect workflow cannot locate valid Transport Nodes.
To resolve this issue, ensure that the target cluster is configured with an NSX Overlay transport zone. The HCX NE service requires overlay network support to establish the Service Mesh successfully.
Extend the appropriate overlay transport zone to all hosts within the target cluster to meet this requirement
Canonical guidance on Network Extension prerequisites can be found in the document below: