You may experience the following symptoms when using Source NAT (SNAT) in a Tier-0 VRF environment:
VMware NSX 4.2.x
The issue occurs because the SNAT Translated IP address is configured to be the same IP address as the Tier-0 VRF Uplink Interface.
When the same IP is used for both the translation and the physical uplink, the Tier-0 Gateway cannot correctly process the return traffic. The Edge node identifies the incoming packet's destination (the translated IP) as its own local interface address rather than a NAT translation entry, preventing the traffic from being forwarded back to the downstream Tier-1 Gateway and the source VM.
Workaround: To restore connectivity, you must ensure the SNAT Translated IP does not conflict with the Tier-0 Uplink IP: