Hi @Ramblin . FTTP does not VLAN setting. Should be disabled. I believe the normal router for FTTP is C1200 not VR1600, even though both should work. With FTTP, your phone connects to the NBN box.
Are you trying to connect the mesh system to NBN box or VR1600 router?
@Ramblin . You've mentioned the Archer VR1600.
You settings are correct. Connection type is PPPoE using dynamic ip address.
Also, the DLink device. Is it a DLink COVR-C1200? If so, it can do VLAN ID=2 as you say.
Any other boxes? (black box with green lights or white box with blue lights or something else or nothing?)
When you say "connect NBN via phone", do you mean it is plugged into the telephone line socket?
Which device is plugged into telephone socket?
Maybe you could upload a picture showing how the cables are connected.