The NSX Native Load Balancer used with the NSX Container Plugin (NCP) does not support the xDS (Extensible Discovery Service) management protocol. As a result, xDS-based configuration and service discovery features cannot be enabled or configured on NSX Native Load Balancer virtual servers.
This article explains the current support limitations.
VMware NSX
The standard NSX Native Load Balancer does not support the xDS protocol. xDS is the data plane API utilized exclusively by Envoy-based proxies.
xDS is not supported with the NSX Native Load Balancer. Therefore, you cannot enable it when using the NSX Native Load Balancer with NCP.