Hi, pleasure, hope we can figure it out. The configs looks perfect for the setup and should work if traffic that match the policies flow through the device. The by-pass makes sense for the Internet traffic. The multisite config is also configured right, although only required if there are multiple edge sites.
Some info that might point us in the right direction:
Does the wan0 network traffic (Reports > Network > Traffic) reflect the same network traffic that you expect going over the router? (E.g is it possible that traffic towards the Edge site is missing the Core)
Also just to be sure, traffic is directly between the 192.168.1.0/24 and 192.168.111.0/24 range? Or in other words no special NAT addresses? If for example the servers have a public addresses that are translated to the internal range.
On the dashboard is the datastore growing? (Shows that the policies are matching the subnets and the database is growing)
Is the free traffic graph showing any savings on a second transfer?
Protocol used not encrypted? (Datastore will grow, but traffic saving stats will remain low)
+-Speed throughput of the IPsec VPN? (If throughput is higher than the hardware specs can handle, the free traffic stats will show savings, but throughput test might not show throughput gains.
Any interface errors under Reports > Network > Interface Statistics?