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Hi,
Is it intended behavior?
Yes. The idea is that if you have a setup with L4Linux running in a single instance on top of Fiasco, you want it to reuse the NICs MAC, so that it really behaves as if it was Linux running on your local machine (e.g. with MAC-based DHCP setups). For the lo interface, there is no physical NIC you could reuse.
(Note, that using ORe's lo from L4Linux is not the same as using Linux' own lo interface.)
Why do we need HW MAC for HW NIC and virtual one for "lo"? How in this case several Linux instances will use the same HW MAC?
The keep_device_mac option is a hint to the ORe server and it will only allocate the physical MAC to one of its clients, all others will get a virtual one even if they try to request the physical MAC. (pkg/ore/server/clients.c:72) Currently, this goes out to the first client trying to get it, you could extend ORe to make it configurable if necessary.
Hth, Bjoern