Tailnet appears to be Tailscale which is Wireguard underneath. This means it operates at layer 3 (IP). However a bunch of smart home stuff (mDNS, WoL, etc) all depend on layer 2 connectivity (same subnet).
That means some stuff won’t work correctly.
It just updated on my phone to the new icon. I tried to give it a chance but wow that looks not great. Something about the scale and lack of discerning features.