To debug, I would first create a regular EC2 instance in the subnet(s) that you are using for you VPC Lambda to see if you can connect to the Internet from the EC2 instance. That way you can narrow down the scope of the problem (i.e. if you cannot connect, then you can assume for now that Lambda is NOT related to the problem).
Is the subnet you are using a public or private subnet?
If it is a private subnet, do you have a NAT Gateway setup to allow access to the internet?
You can also modify Security Groups to allow "ping"/ICMP traffic if that would be helpful.
Thanks! Allowing icmp got me over the hump.
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