After following MariusMatutiae's suggestion I started the iperf server on the client machine and then tried to make the bidirectional request from the VM and here is what I got:

After following MariusMatutiae's suggestion I started the iperf server on the client machine and then tried to make the bidirectional request from the VM and here is what I got:

EDIT 2

As I suspected and Marius confirmed client and server can't run on the same machine. So I waited for an opportune time to kill the daemon so it wouldn't run concurrently to the client, started the server only with -s on the host (which is on a totally other location, as Marius asked), started the bidirectional request on the VM and the request went through (Thought of the moment: "What the...").

And then it hit me, I get the issue only if the server is started as daemon.

I confirmed my hypothesis by testing both with server as a daemon and not a daemon, as well as swapping the role of the machines.

So now, why is that that it freezes if the iperf server is started as daemon? Can I solve this issue, or should I resign myself to let a terminal running on the machine?

EDIT 2

As I suspected and Marius confirmed client and server can't run on the same machine. So I waited for an opportune time to kill the daemon so it wouldn't run concurrently to the client, started the server only with -s on the host (which is on a totally other location, as Marius asked), started the bidirectional request on the VM and the request went through (Thought of the moment: "What the...").

And then it hit me, I get the issue only if the server is started as daemon.

I confirmed my hypothesis by testing both with server as a daemon and not a daemon, as well as swapping the role of the machines.

So now, why is that that it freezes if the iperf server is started as daemon? Can I solve this issue, or should I resign myself to let a terminal running on the machine?