I have created a VxLAN between an RB2004 and RB2116.

The Network has 1500 L3 MTU and 1584 L2 MTU between the two routers.

For the VxLAN I set the MTU to 1500, and it shows the Actual MTU as 1500 and the L2 MTU as 65535.

If I try to ping through the VxLAN with DF enabled, the largest packet I can pass is 1450 bytes.

I also have VPLS Tunnel between the same routers which is able to pass 1500 byte packets without fragmentation.

Is it possible to have a Full 1500 byte packet pass through a VxLAN?

If I set up a PPPoE Server on the VxLAN using 1480 MTU would I be able to have 1480 MTU on my PPPoE Connection without fragmentation since PPPoE is a Layer 2 connection, or will there be fragmentation happening?

VXLAN uses Layer3. You need to increase your Layer3 MTU between routers if you want 1500 to pass through VXLAN.