GitHub user btzq added a comment to the discussion: Virtual machine on 
different hosts but in same isolated network not able to communicate (can't 
ping each other).

Hey Sorry i just saw this @zap51 

It was the VTEP. More details here:

https://docs.cloudstack.apache.org/en/latest/plugins/vxlan.html#important-note-on-max-number-of-multicast-groups-and-thus-vxlan-interfaces

Since we are using VXLAN Multicast, we missed a step. Once we made the changes 
and increase the max members, it all worked.

GitHub link: 
https://github.com/apache/cloudstack/discussions/9154#discussioncomment-10020463

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