GitHub user StepBee added a comment to the discussion: Network VF (SR-IOV) 
options / questions (need a few hundred VLANs in guest)

Yes, you can give each host multiple tags, enabling a variety of functionality 
when combining them.

In regards to the VXLAN - depending on how much traffic you are talking about, 
but if you have the possibility i think it's always worth a try.
I imagine finding a way out of the pure Layer 2 dependency could help for other 
challenges as well.

GitHub link: 
https://github.com/apache/cloudstack/discussions/11808#discussioncomment-14640057

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