The earliest recollection of this bug is traced back to PAN-OS 10.1.8 - February 19, 2025. This bug is fixed in PAN-OS versions 10.1.8. Fixed an issue where, when tunnel content inspection was enabled for VXLAN, ARP over VXLAN packets were dropped. For more information: https://docs.paloaltonetworks.com/pan-os/10-1/pan-os-release-notes/pan-os-10-1-8-known-and-addressed-issues/pan-os-10-1-8-addressed-issues