I practiced a question similar to this, and I feel like loopback interfaces are important for stability, but I can't recall if they need to be advertised.
I'm a bit confused on the differences between underlay and overlay networking. Maybe I should review those concepts first before trying to answer this question. Don't want to guess and get it wrong.
I've got this one! Loopback interfaces are required for OSPF underlay connectivity, but not for EVPN VXLAN overlay networks. And they should be avoided if NSX is used as the overlay. Easy peasy.
Okay, let's see. I know loopback interfaces are important for management and troubleshooting, but I'm not sure how they relate to OSPF and EVPN VXLAN. I'll have to review those topics before deciding.
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