In my scenerio, the private IPs wont be able to communicate to each to establish a tunnel since there is not a private MPLS link. In the example they are describing bringing a tunnel up using those private IPs:
"In this example, the Dashboard knows that the two devices can’t form a VPN Tunnel through the same SRC IP address, so it will try the IP addresses of the Interfaces. The routing through the MPLS allows the MX devices to communicate using these Private IP addresses, and the tunnel is dynamically established."