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.1 is the dataplane TEP and .2 is the Unicast TEP. Unicast TEP is hidden. If you uncheck the "use default" during the multi-pod build-up phase, then the unicast TEP is visible. Therefore, you cannot use the first two IPs for any node's loopback IP.
@mannycho How was your experience with the migration? As I have to perform a similar migration in the upcoming therefore would like to know the insights.