Thank you for sharing the details above and thank you for your patience throughout this process.
I think the cause of the issue here is that you are trying to use Virtual Network Gateway of type Express Route deployed in in the SR-VNetGW2 to establish a VNET-VNET VPN gateway connection. When you connect a virtual network to another virtual network with a VNet-to-VNet connection type (VNet2VNet), it's similar to creating a Site-to-Site IPsec connection to an on-premises location. VNet-to-VNet connection uses a VPN gateway to provide a secure tunnel with IPsec/IKE and function the same way when communicating. Based on the network diagram above as SR-VNetGW2 contains Virtual Network Gateway of type ExpressRoute hence it is greyed out. You can go through this documentation for additional details on Gateway types.
In Azure a virtual network can have only two virtual network gateways: one VPN gateway and one ExpressRoute gateway. Based on your requirement you can create an additional Virtual Network Gateway of type VPN in your SR-VNetGW2 VNET and then create the required VNET-VNET VPN gateway connection.
Hope this helps! Please let me know if you have any additional questions. Thank you!
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