VDL2 initialization failed.
The number of VXLAN ports or virtual wires exceeds the limit or there is no enough resources.
Assuming that system resources are present, and the maximum number of ports has not been exceeded, then there is no specific solution. It is advised to contact VMware Support.
See this VMware KB article VXLAN port initialization fails (2007290) for more details.
Refer to the VMware Online Documentation for more information on vCenter event messages and possible solutions.