As an update, I have done some more troubleshooting on the issue:
Switching to static routes over the VTI tunnel works. Using regular tunnel IPv4 also works Its only when we use FRR via OSPF (have not tested BGP) that traffic does not flow between hub and spoke.
Topology is 1 Hub (virtual) with 3 spokes (2 virtual, 1 physical pfSense). Its the physical pfSense spoke that is having issue
Enable IPsec MSS Clamping with different values, 1400, 1350, 1200, etc. on both hub and spoke and no issue. Also adjusted the VTI MTU value as well with no luck
Both sides are using AES-NI CPU Crypto. Enable/Disabling this has no effect
Both sides are using IPsec Asynchronous Cryptography. Enable/Disabling this has no effect
Tried different P2 encryption options but no luck. Currently using
P1: AES128-GCM (128 bits) AES-XCBC via 14 (2048) DH Group
P2: ESP AES128-GCM (128 bits) PFS Group: 14 (2048). NO Hash algorithms
It appears another user on Reddit is facing similar issues: https://www.reddit.com/r/PFSENSE/comments/mzab6v/251_and_ipsec_vti/
Any ideas why FRR and OSPF is not sending traffic over the network? What troubleshooting steps can I take to debug this further?