An administrator creates a new VPC in No NAT mode to allow VMs in a...

From a Nutanix exam perspective, this question is really testing whether the administrator understands the control point that actually governs the behavior shown in the scenario. The correct response is B, meaning “Create an Externally Routable Prefix (ERP) entry for the overlay subnet in the VPC.”. Externally Routable Prefixes determine which overlay prefixes are advertised beyond the VPC. If the ERP does not cover the workload subnet, upstream devices never learn a valid return path, even when the local VPC appears healthy. Operationally, Flow Virtual Networking should be checked from the control plane outward: gateway health, peering state, route advertisement, ERP coverage, external path, and MTU when encapsulation is involved.

Notice that A sounds plausible, but it does not align with the specific Flow policy object or precedence rule that controls this case. C is not appropriate because NAT changes addressing behavior and does not solve the routing or policy condition described in the scenario. For exam preparation, remember that Nutanix usually separates discovery from enforcement, routing from NAT, and access policy from identity mapping. Choosing the layer that truly owns the function is what leads to the right answer.