What sort of hardware are you running it on?
You are correct about the TEPs in 3.1, details on how that works can be found here https://www.lab2prod.com.au/2020/11/nsx-t-inter-TEP.html#more
How are you testing, have you run any iPerf tests or just copying and pasting files?
Have you done any packet captures on the edge appliances and hosts whilst doing the transfers? Have you checked esxtop to see if anything looks off? What switches, is your routing mtu set correctly?