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Metadata http request from instance using 169.254.169.254 is failing when external interface is used

Metadata http request from instance using 169.254.169.254 is failing when only external interface is attached with the following error during initial reboot:

http://254.169.254.169/2009-04-04/metadata/instance-id failed. network unreachable

When I attach an internal network it works fine and cloud-init is successful. I have updated the metadata.ini file, dhcp.ini, and nova.conf files, but same issue.

Openstack version = Queens 1 Controller, same as network node 10 compute hosts. External network is configured as vxlan and it is a flat network.

Let me know if anyone has an input or question on this.

Thanks, Gee