Since the issue is occurring due to Buffer overflow, the same needs to be increased for VMXNet2 adapter and from with the Operating System. Please refer to below article from VM Ware:
The output of esxtop show dropped receive packets at the virtual switch (1010071)Engage VMware support if any further assistance is needed.
Problem Cause
This issue is observed due to the overflow of the Ring Buffer. To check if the over flow of the ring buffer is happening, please follow the steps below:
1. Logon to the ESXi host and start ESXTOP.
2. Now press "n" for network and 't' to order them.
3. Note down the nine digit Port Number and the Internal vSwitch name, Like - 33554464 and DvsPortset-0.
4. Then run the vsish internal debugging shell to get the statistics report from the VMXNet3 adapter:
[root@esx0:~] vsish -e get /net/portsets/vSwitch0/ports/33554464/vmxnet3/rxSummary
stats of a vmxnet3 vNIC rx queue {
LRO pkts rx ok:50314577
LRO bytes rx ok:1670451542658
pkts rx ok:50714621
bytes rx ok:1670920359206
unicast pkts rx ok:50714426
unicast bytes rx ok:1670920332742
multicast pkts rx ok:0
multicast bytes rx ok:0
broadcast pkts rx ok:195
broadcast bytes rx ok:26464
running out of buffers:10370 pkts receive error:0
# of times the 1st ring is full:7086
# of times the 2nd ring is full:3284 fail to map a rx buffer:0
request to page in a buffer:0
# of times rx queue is stopped:0
failed when copying into the guest buffer:0
# of pkts dropped due to large hdrs:0
# of pkts dropped due to max number of SG limits:0
}
Above values indicate that the ring buffer is over flowing.