VS fails to process ANY traffic

For the purposes of this conversation, think of the architecture of an F5 virtual server as a firewall policy. There is an IP address and port requirement that inbound traffic must satisfy before traffic is passed. While an F5 self IP address is like any other network interface that subscribes to the OSI model, it is not designed to manage application traffic with policies, profiles, ssl offloading, etc. -- a virtual server is.

That said, any application traffic designed to pass traffic through an F5 must have a virtual server with an IP address, port (e.g. 10.1.1.1:3389) and any applicable profiles and policies in place to properly handle this traffic flow.

In the case of your configuration, traffic is being sent to the self-ip address. This address will accept the traffic but will not forward/manage/manipulate that traffic because the self-ip address is not designed for that functionality. Much like sending traffic to the IP address assigned to the interface of a firewall (192.168.0.1:443) expecting it to hit a firewall policy (10.0.0.1:443). The firewall interface subscribes to the OSI model and may accept the traffic but nothing will happen afterwards.