Which statement is true regarding IP overlapping in OCI's VCN peering?

In Oracle Cloud Infrastructure (OCI), IP overlapping in Virtual Cloud Network (VCN) peering is not permitted, making the statement that it is "never allowed" accurate. This restriction is in place to ensure that VCNs being peered can effectively communicate without routing conflicts. When two VCNs have overlapping IP address ranges, it creates ambiguity in packet routing, as both networks would attempt to route traffic to the same IP address, leading to communication failures.

In OCI, proper network design is essential, and avoiding IP overlap is a foundational aspect of establishing VCN peering. For organizations utilizing multiple VCNs, especially in different regions, this means careful planning of IP address allocation is necessary to ensure that each VCN maintains unique and non-overlapping IP ranges. This restriction helps maintain clarity in network communication and overall effectiveness of network routing.