HCX Service Mesh deployment fails with Could not find an OVERLAY transport zone

 

ISSUE:

The affected environment has the following configuration:

- NSX is deployed in On-Premises and no Overlay-TZ is configured in the HCX Network Profile

- The WANOPT is selected during the Service Mesh deployment

Cause

When using an WAN Optimization appliance, an Overlay Transport Zone is required for communication with the IX appliance. This issue can occur if there is NSX on-premises and no overlay segment is configured in the HCX network profile.

Resolution

- Create a new overlay transport zone for the WANOPT.

Or 

- Deploy the service mesh without WANOPT