@an_technical I believe your topology is a little bit wrong. You have a layer 2 connect between both VS via 2 virtual switches. That‘s ok, but all attached interfaces are on different IP subnets, so no routing is possible between VS1 and VS2 and vice versa. And additional you have always two connects between both VSs, this must be observed with priorities.
I believe you‘re talking only about route propagation via the route configuration settings in the VS object not any other dynamic routing protocol like OSPF or BGP …?