AWS MGN and License

Hi CloudGurus

While using AWS MGN to migrate from on-prem RHEL BYOL to AWS License Included as per prescriptive-guidance below is given

https://docs.aws.amazon.com/prescriptive-guidance/latest/patterns/migrate-rhel-byol-systems-to-aws-license-included-instances-by-using-aws-mgn.html

AWS Included License (Pay-As-You-Go): If you prefer to use the AWS Included License (PAYG) model, you must select an AMI in the Launch Template based on the operating system version you are migrating. For example, if you are migrating Red Hat Enterprise Linux (RHEL) 8.x from on-premises to AWS Cloud and want to use the AWS Included License, you need to select the corresponding RHEL 8.x AMI in the Launch Template.

Questions :

1. After installing MGN Replication agent on on-prem source servers while selecting the drives for replication there is NO option to Exclude the Root device that contains the OS image. As MGN does block by block replication meaning all contents of root device including OS image will be replicated to AWS. In this case if we include AMI License Included ID in MGN Launch template settings as stated in prescriptive guidance above then this AMI LI will also contain the OS image. So from onprem source VM OS image is getting replicated by MGN and also this AMI LI has OS image. Will this not create a conflict with 2 OS images ?

(OR)

2. Does it mean if AMI LI is included in MGN Launch template then the Test \ cutover EC2 instance will take AMI LI Image to boot by excluding on-prem OS image but still copies all other root device data from on-prem servers by excluding OS image from source servers ? How does it work ?