I used your instruction below to modify my existing VCL but I still see __cfduid cookie in the browser. Please see attached.
The article you found refers to the cookie being filtered when it reaches the origin, your screenshot on the other hand shows the cookie on the client side. The former and the latter are not related.
That cookie is always going to be there between Cloudflare and the browser.
Okay got it. So this stripping is between origin and cloudflare? Are there any other performance tuning tips related to varnish and cloudflare that needs to be taken care off?
Yes, on the origin to be precise.