based on my understanding from VCP Prep guide, If you are using Layer 2 VPN you cannot use DLR. Instead You must NSX Edge.
Any help will be usefull. I wouldn't use an ESG as a GW and lost distributed routing.
If you wish to have distributed routing then the only choice you have is using NSX Universal switch and routers.With Great Regards,
vExpert 2012-2017 | VCP3-5 | VCAP5-DCD | VCP-NV | vSAN Specialist | VDI | Germany
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The fact is: You cannot strech a vxlan between 2 NSX platform if there is a dlr on each side. Even if the dlr is not connected to the streched vxlan.
The cause is the unique vdr vmac.
The NSX R&D works to fix it in future release.
vxlan-vxlan l2vpn will not work if there is a DLR instances deployed, even if they are not connected to the network being extended via L2VPN (which you do have). The workaround would be to move the default gateways from DLR to the NSX Edge. So the migration workflow would be a) Move the default gateway from DLR to Edge b) Migrate the VM to the target DC, gateway will be reachable if they are on the edge. c) Do the gateway cutover to the DLR in target DC.
To use this scenario as DLR , first you need to make a UDLR instance if you are not in cross-vc deployment then only way is to use Edge as an gateway or external device reachable from both ends.
Use case for moving workload with L2VPN is here
please take a look on this