If Avamar proxy can't connect to the Avamar server(s) backups will not work. If proxy can't access datastore it will fall back to NBD transport protocol instead of hotadd which will require a network connection between esxi host and proxy. Depending on how your infrastructure is setup there might be a work around with Avamar. Possibly you can place an Avamar proxy in a place that doesn't have any network issues and has access to the datastores. Possibly the backup data doesn't need to go through the network that is having issues.
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