Reachability error when instance tries to reach Internet Gateway through a different VPC

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In one account, I have multiple VPCs, one specific for networking which contain a Internet Gateway (IGW), and one for actual workload containing EC2 instances. VPCs are peered through Transit Gateway (TGW).

If I start an instance in my Network VPC, I can sucessfuly ssh to it, then ssh to instance in the workload VPCs. But this latest can not access internet (nor I can ssh directly to it).

When I run a Reachability analyzer from my workload instance to the IGW, I get the following error:

Traffic cannot reach the internet through internet gateway igw-xxx when the source address is not paired with a public IP address of a network interface in the VPC vpc-xxx with an attachment in a functional state.

I confirm I have a public IP linked to the workload instance.

I am not sure what else I can look at, any suggestion?

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