VXLAN Underlay eBGP Two-AS

Hello,

I would like to ask you why won’t the LEAF2 switch even forward an ARP request from S1 to S2 before I configure the next-hop to remain unchanged. I have done packet capture and I have seen that ARP request gets sent properly to a multicast address and it reaches LEAF2, the packet capture from the link between LEAF2 and S2 shows that the ARP request doesn’t get forwarded to that link. Why does it happen precisely? Is it because the VXLAN-encapsulated ARP request comes from 3.3.3.3 address and the nve peer table shows only 1.1.1.1 at that point so the LEAF2 switch considers the packet to be erroneous and discards it?

Thanks,
Alex