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The clients ping the ePO server to see which one has a better response for the updates if you use multiple repositories (and superagents or distributed repositories). Standard ePO has two repositories: The ePO server and the FallBack (McAfee http) which are selected by pingtime. Maybe you can set the policy to: Use order in repository list in the McAfee Agent policy, but I do not know if this will resolve your problem. Just out of curiosity, why block ICMP on your internal network?
I have dhcp + ePO server 1 - 50 nos IP reserved for internal staff workers ( those are managed agents) and i don't want to communicate other IPs to ePO server.
This sounds more like a firewall issue then VSE. Maybe there is a way to make rule with your firewall to let the machines / IP range send ICMP requests to the ePO server and block all others. Still I think this is a little bit overdone in a local network unless it's in a DMZ.