XPS AIO 2720 Replace my 32gb SSD with 500GB bootable SSD and keep 2 TB HDD

Following clean windows 10 Install, with BIOS config changed to AHCI and Intel RST not re-installed, everything is working fine (now at Windows 20H2). I would like to replace the 32gb SSD on the motherboard with a 500GB SSD to then migrate OS from 2TB HDD to boot from and use HDD for Data.

I read limitations of 256GB for mSata in manual but is that limitation only apply when using SSD on mobo + Intel RST in a caching mode?

Could I even install a 1 TB SSD on mobo?

What are other caveats to consider?