The fp-eth0 interface uses for the overlay Transport zone and the N-VDS is the one usei for the TEP. The Edge itself has its own TEP and it works to use the management VLAN, but you are using that VLAN for overlay tunnels involving the Edge. Best practice is to use a separate VLAN for TEP, remembering that the VLAN for the Edge VM TEP has to be different than the TEP VLAN of the ESXi host.
The current version of NSX doesn’t show VLAN backed Logical Switches when configuring the Edge VM in NSX. You have to manually connect to the desired LS directly through vCenter until next version which will solve this is released or manually deploy the Edge VM and then connect it to NSX.
