FYI for the community - unicast is not supported on Cisco UCS today that is why this was not working. IGMP Multicast has now been used.
Also within the vlan where the nodes are IP IGMP snooping needs to be disabled and only where the nlb nodes are
1000v ----
conf t
vlan 999
no ip igmp snooping
in the northbound switch you need to have a igmp querier setup in the same vlan.