Exactly - your L2 Ethernet shouldn't go beyond immediate connection between end system and first L3 router, in DC conditions it should be to Tor... Or on-Hyperv

Exactly - your L2 Ethernet shouldn't go beyond immediate connection between end system and first L3 router, in DC conditions it should be to Tor... Or on-Hypervisor router. Larger L2 spans should be done only when required, and preferably with things like TRILL/SPB.