Addresses created on the fan can reach the Internet (or other private addresses) by use of NAT from their host. Because they are behind NAT on their host, they themselves cannot be reached directly from non-fan addresses unless special port mapping arrangements have been made. Generally, it is easiest for containers on the same fan to talk to one another.
I currently use FAN Networking when the LXD cluster is defined on virtual machines. In that case, it gives an extremely simple setup and “does the job” of having a shared network across hosts.
I know that OVN is a more powerful setup, but in some cases I had trouble defining it when having VMs as LXD hosts. Is it generally supported / recommended to setup OVN on virtual network interfaces?