Symptom
Software forwarding fails for IPv6 addresses reachable via Static Route with next hop reachable over VXLAN EVPN. Example: ping6 will fail "No route to host" or Request timed out.
Packets originated from software side NX-OS fail to leave the switch.
Conditions
VXLAN-EVPN setup with IPv6 hosts in Overlay and static route pointing to addresses with next hop resolved by VTEP over EVPN.
Example: VTEP1 has IPv6 address X reachable over next-hop Y as defined by static-route. Y is an EVPN route-type 2 reachable over VXLAN EVPN Fabric residing on VTEP2.
Workaround
Remove the static-route and redistribute EVPN route-type 5 static route from VTEP where next-hop is locally attached.
Or, use static route with HMM tracking, in this case static-route can be used on all VTEP's with track object:
conf t
vrf context tenant-1
ipv6 route /128 track 211
track 211 ipv6 route /128 reachability hmm
vrf member tenant-1
static route is active only on VTEP with next-hop learnt as HMM route.
Further Problem Description
Locally originate packets, example Netflow Export fails as NX-OS can't reach out to such IPv6 addresses resolved via static route and next-hop over EVPN