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  • pritam zare thinks this is interesting:

adds it to its MAC table pointing towards C3-H2-VTEP

From

Cover of VCP6-NV Official Cert Guide (Exam #2V0-641)

Note

why is this happening?
MAC Table consists of VM MAC, VNI and VTEP-IP. Source MAC is read by Logical Switch and updates the MAC table with the VTEP. In the following steps (16 and 17) ARP entries are also updated.