In terms of processing as stated above by others, The wireguard protocol or routing process should be considered in the TWO DIRECTIONS.
INCOMING (FILTERING) - Traffic arriving at ones router through the wg tunnel and goes through a wg filtering process which basically amounts to checking the allowed addresses associated with traffic coming from the specific peer, to either allow or drop the incoming packets. If the incoming source address, exists for that peer, then the traffic is permitted to exit the tunnel and is now un-encrypted and faces the routers own firewall rules ( allowed to reach router services - input chain, or allowed to LAN subnets - forward chain ) or not and is dropped.
OUTGOING (MATCHING AND FILTERING) - Traffic leaving ones router, aka traffic originated locally, first has to meet local firewall rules, is the source address allowed to enter the tunnel. If so and a route exists pushing the traffic into the tunnel, then the Wireguard processing takes over (the crypto processing) in this case its not just straight filtering, its MATCHING and FILTERING. In this case the router starting at the first peer, looks to see if the destination address matches any of the peers, when and if it does, it then selects the peer for then transmitting of the traffic.
One should intuitively see that OUTGOING traffic processing will not work properly (on a wg server router for handshake, aka multiple client peers) if
a. one has duplicate subnets in the allowed addresses of peers on the router
b. has any entry of 0.0.0.0/0 on a single client
Ex. lets say you have 5 client peers, and the first one on the list has allowed address of 0.0.0.0/0
This effectively means ALL originating traffic on the router, heading for peers 2-5, will never be used.
Traffic will go only through peer1, and any traffic intended for other than peer1 will be dropped when it reaches the client peer.
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To answer your question. YES. If you have the opportunity to control at least one end of a wireguard tunnel, it would be smart to avoid any duplication as then there would be conflicts.
Now, of late MT is providing some unique way when dealing with wireguard when one has no control over networks but has to admin them. So clients provide setups with such conflicts.
MT routers can now deal with that using wireguard over vrf but its beyond my scope of knowledge............