It could be a bug of the ios versionhttps://bst.cisco.com/quickview/bug/CSCwc87891My virtual image Cisco IOS-XE Version 17.3.8a seems to be still affected
Hi, i had the same problem. The error "Module 1 is not 'feature nv overlay' capable. 'feature nve overlay' requires application leaf engine' (ALE) 1 or above based line cards. Please consult documentation" is cosmetic and does not prevent nve (VXLAN)...