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Sophos XG "crashing" VDSL modem

I am not sure how this is possible, but I have issues where the XG firewall causes my FTTN DSL modem to stop responding.

Intended Layout (worked for years using VMware workstation edition, recently moved to Hyper-V but think it worked for a while) is:

PC -> Hyper-V Internal Network -> Hyper-V XG [latest ver] -> Physical NIC (not in use by management OS) -> DSL Modem.

There are other connections to the XG (2 other physical NICs, 1 connected to a Cisco switch sucessfully running OSPF with XG and CCTV Cameras and the second NIC connects to a Smart TV). There are several VMs connecting to XG (CCTV sw, Windows PC, DMZ server).

When the computer starts, everything works fine. Full internet. After about 4 to 5 minutes, I start getting timeout errors on ping and these last for about 5 minutes.

During this time, mobile phone devices which are connected to the DSL Modem (and therefore not going through Sophos) also lose Internet connectivity. Even the modem's internal diagnostics fail (i.e. it can't ping Internet DNS servers). If I turn off the XG and reconfigure physical host NICs to bypass it, I still don't get internet for several minutes. 

I have tried a different brand modem, no change. Different NICs (Intel/Realtek), no change.

If I disable in hyper-v the NIC going from XG to the Internet this issue does not happen.

If I change the VMs to go direct to the Internet, it does not happen.

It only happens when XG has a connection to the Internet adaptor, even with no VMs or anything else using it.

I reinstalled XG (but restored backup configuration) same issue.

I am really curious as to what in the XG could interfere with 2 different brand modems like that, that even wifi devices connecting to the modem no longer get Internet and the modem itself no longer gets Internet. It's almost like it's somehow triggering packet blocking somewhere. But with no machines putting traffic through, it is something originating from the XG. 

XG Logs not really show anything helpful. Have turned off IPS and ATP.

Please give me some ideas on what to look for. 



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