Using esphome with vlan

Long post but can anyone help me.!
I use esphome (standalone without HA) to transfer data to Node red flows via MQTT
I have recently altered my network setup with unfortunate consequences.
I use vigor 2860n+ router with vdsl for internet access which works fine and its default LAN address is 192.168.1.0/24 - it happily issues addresses in the range 192.168.1.10-254 using DHCP.
I have a SOYO NUC attached to Port 1 (address 192.168.1.80) and on this nuc I have esphome , node red , visual studio code and my MQTT broker installed and on the surface the software all runs fine, I can see the dashboards and connections to MQTT broker seem fine. I can program code save and upload with the cable attached with no problem.
My intention is to program each of my ESPHOME devices on this nuc and issue each of them with a static IP address. in the range 192.168.25.20-199
Port 2 of my router is set up as a VLAN with its address being 192.168.25.0/24 as I want to keep all of my esphome devices on a separate plan from my home generally.
So eg my first esphome device has address 192.168.25.21
I have set inter VLAN/LAN traffic as on, and can happily PING from any on my network to the espdevices with no packet loss.
To program the ESPHOME devices I connect them by USB cable to the NUC. and edit the devices either with visual studio code or the dashboard editor and save edits etc.
I have a wireless access point attached to the VLAN which works well and has internet access.
However when I install code on the device it installs fine and connects to the wifi and completes all its routines without problem all is purple. The Dashboard card for the device shows OFFLINE and is red. If I then try to upload the code (just the initial config for testing purposes) by OTA it starts well Ieven get this log
INFO Upload took 3.34 seconds, waiting for result… INFO OTA successful INFO Successfully uploaded program. INFO Starting log output from 192.168.25.21 using esphome API INFO Successfully connected to new-device-camper @ 192.168.25.21 in 15.052s INFO Successful handshake with new-device-camper @ 192.168.25.21 in 2.960s [14:11:15][I][app:100]: ESPHome version 2024.8.3 compiled on Oct 2 2024, 10:40:37 [14:11:16][C][wifi:600]: WiFi: [14:11:16][C][wifi:428]: Local MAC: EC:64:C9:DC:91:E7 [14:11:16][C][wifi:433]: SSID: ‘ESPHOME’[redacted] [14:11:16][C][wifi:436]: IP Address: 192.168.25.21 [14:11:16][C][wifi:439]: BSSID: 00:1D:AA:1C:9B:70[redacted] [14:11:16][C][wifi:441]: Hostname: ‘new-device-camper’

but followed by
ERROR Exception in callback _ProactorReadPipeTransport._loop_reading(<_OverlappedF…d result=1056>)
handle: <Handle _ProactorReadPipeTransport._loop_reading(<_OverlappedF…d result=1056>)>
Traceback (most recent call last):
File “C:\Users\Graham Bennett\AppData\Local\Programs\Python\Python312\Lib\asyncio\events.py”, line 88, in _run
self._context.run(self._callback, *self._args)
File “C:\Users\Graham Bennett\AppData\Local\Programs\Python\Python312\Lib\asyncio\proactor_events.py”, line 325, in _loop_reading
self._data_received(data, length) etc etc etc
Before I set up the VLAN and the setup worked flawlessly.

Sorry its a bit longwinded but can anyone recognise the error and suggest a fix?
Frustrated!

I’ve had network issues (WiFi channel overloaded) when seen 10+ seconds to connect to device.
Usually is less than second. IMHO something not right in network, it perform too slow.