Basically you can achieve nested ESXI with VXLAN traffic to physical host were you have VM's by having a VXLAN portgroup connected to the Nested ESXI VM ( As of now you are leveraging DPG-LAN-NESTED (vlan trunk / accepts Promiscuous mode, MAC changes, Forged transmits) - uplink 1 - physical nic ) . Also ensure MTU is 1600/9000 end to end..
So it would like this Physical Host- VXLAN Network (Logical Switch) connected to Nested ESXI , VM Connected to VXLAN Network (Nested VXLAN portgroup from a overall architecture perspective)
However by far the best option is , keep physical host in VLAN only setup ( No NSX preparation) .
Anyway, today i was able to free one port in my home router and connected there the 2nd nic of my physical ESXi, so i went for solution 1 of the blog (separated the physical and nested ESXi's in different dswitche's).
Everything working fine now.