To put it another way, "Why can't vMX (Virtual MX) be in Routed Mode (NAT Mode)?".
It is related to DC-DC Failover.
To make Meraki vMX redundant, it must be DC-DC Failover. Because Meraki vMX does not support Warm-Spare (VRRP).
The implementation is different from on-premises because the public cloud's infrastructure manages IP addresses and Route Tables.
Redundant vMX Hub in DC-DC Failover must be in Concentrator Mode, not Routed Mode (NAT Mode).
Because, duplicate subnets are not allowed in Routed Mode (NAT Mode).
MX in Routed Mode (NAT Mode) that join Auto VPN must be unique subnets.
Auto VPN Routes are statically configured and there must not be more than one route.
For example, Packet says: "Where do I go if I have duplicate routes in Routed Mode (NAT Mode)?"
However. with DC-DC Failover topology, there is redundancy between the DCs, so there is a possibility of reaching the destination via either DC.
Concentrator Mode allows duplicate routes to be advertised to Auto VPN.
It is only with that duplicated route that DC-DC Failover is possible.
For these reasons, it makes virtually no sense to put vMX in Routed Mode (NAT Mode) in the production environment, even if it was possible.
If you ask why we chose such specifications, that is another topic.
This product characteristic is very difficult.