Prevent the SCCM client from using hyper-v IP addresses
If you install Hyper-V on Windows 10, it will create a default adapter and randomly create an IP address, usually in the 172.x.x.x subnet. If by chance, you have a boundary that this random IP address falls into, the SCCM client will think it is part of this boundary, in addition to the boundary associated with it's physical NIC. The client considers both boundaries to be a Current boundary group and will therefore potentially download content from DP's associated within either boundary. In most situations, this additional DP will likely be across a WAN link which of course can cause issues.
AdminAdam Meltzer (ConfigMgr Product Team) (Software Engineer, System Center Configuration Manager) commented
Understood. The problem is that the Hyper-V default switch is adding another IP address that's creating an overlapping boundary. I'll move this out of By Design to Noted to keep it on the radar so we can look into possible ways to improve this in the future.
Adam, I don't think I explained this very well. This is happening on the HOST machine not the guest VM. Even without a VM running on the host, windows will install the default switch when the Hyper-V feature is installed. This extra IP address is the one that messes up the host's sccm client.