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Ok, so we opened a support ticket with Alteryx and they were very prompt in admitting that this is a known issue and also provided an elegant solution to work around the issue. Hope this is going to help everyone that gets the "Unable to translate alias" error while connecting to Gallery Data Connections from Macros.
Within the main workflow, add Input Data tools for all Gallery Data Connections referenced within the Macros. You can group all those extra Input Data tools into a container and disable the container so it won't affect your workflow. Then save the workflow back to the Gallery and run it.
Doing this will force the Gallery Data Connections used within Macros to be packed along with the workflow when saving the workflow to the Gallery allowing the Gallery to know which Data Connections you need to use.
Give it a try. It worked for us.
Kudos to Alteryx Support for providing the solution in such short time! This needs to be fixed though