Explanation of NonProxied vs Proxied Traffic
My understanding is that proxy LBs terminate the client network traffic at the LB and then forward the request onwards. So in effect they act like a proxy to the original client request. In contrast, nonproxy LBs such the Network LB are pass through LBs in that the original client request reaches the network beyond the LB.
Yes.
One hint at this distinction is the deciding on a load balancer chart. Only the network load balancers preserve client IP addresses.