Have to clarify.
Module B
port 1 and 2 untagged with ISCSI vlan id 128.
Port 3 and 4 untagged with vmware prod vlan id's 5,6,7,8.
Port 5 and 6 tagged vlan id 128 LACP trunk to port 5-6 on module A
Port 7 and 8 tagged vmware prod vlans id; 5,6,7,8 to port 7-8 on module A.
Module A:
port 1 and 2 untagged with ISCSI vlan id 128.
Port 3 and 4 untagged with vmware prod vlan id's 5,6,7,8.
Port 5 and 6 tagged vlan id 128 LACP trunk to port 5-6 on module B
Port 7 and 8 tagged vmware prod vlans id; 5,6,7,8 to port 7-8 on module B.
The setup is done like this to isolate the iscsi traffic. The iscsi trunk goes into blocking state on switch A. Im not familiar with lacp, but I am wondering if this is happening because of the tagging of the iscsi trunk.