Prior to NSX 6.2, if a logical switch was extended to a physical VLAN, it could not simultaneously connect to a DLR and participate in distributed routing. The logical switch could only use either NSX ESG or a physical network router for routing:
NSX 6.2 provides an enhancement to the bridging feature where a DLR can now coexist with layer 2 bridging on a given logical switch. This eliminates unnecessary north-south traffic via NSX Edge or a physical router that optimizes east-west traffic flow: