Traffic not reaching the internet through the newly configured Explicit proxy

• Traffic through the explicit proxy is not reaching the internet.
• The NAT policy used for upstream connections showing hit count zero.
• The security policy from proxy zone to upstream (internet) zone showing hit count zero.
• From CLI, source client have one session being created for listening interface, no trace of an upstream interface.

LOG ERROR (Envoy log):

[2025-10-31 16:40:02.270][9744][trace][pool] [source/common/conn_pool/conn_pool_base.cc:129] not creating a new connection, shouldCreateNewConnection returned false.

• NGFW with web proxy capability
• PanOS >= 11.0
• Secure Web Gateway ( proxy ) configured.
• Transparent
• Explicit proxy

Software issue PAN-208794

1. Edit the virtual router settings with any minor change and commit again. 
2. Any changes to the network/interfaces or network/virtual routers usually fixes this issue.
3. Alternatively, you may try rebooting the firewall. This issue disappears following reboot after the swg (secure web gateway) is setup and configured.