Symptom
N9K is not fragmenting IP traffic in software
Conditions
N9K / IP traffic getting routed and violating MTU on L3 interface
Workaround
Make MTU on L3 interfaces consistent and large enough to not rely on the software to perform the forwarding.
Note, if deploying this configuration is not possible, then it is advised you contact Cisco TAC for a workaround.
Further Problem Description
There are many bottlenecks when relying on the software path to forward traffic and this is not an ideal design. With this design, the best throughput you can achieve (due to CoPP and Hardware Rate-Limiters on the inband path) is 100 pps. Note, performance may vary slightly depending on overall packet size.