Hello Sree,
Thanks for your response. I'm not sure however that your response addressed the question.
The IPSEC VPN tunnel in place is not setup by NSX edges. It is configured on the perimeter firewalls e.g Cisco/Palo that the VTEP VXLAN traffic will traverse.
In effect, for VTEP at site A to communicate with VTEP at site B, their traffic will traverse an IPSEC tunnel established by the perimeter firewalls.
As I type this, I don't see why this wouldn't be supported, but would like to know if it is.
Thanks,
Sky