Is anyone using Home Assistant Connect ZBT-1 Zigbee Thread Matter USB Stick

As per subject, will I have any connectivity issues?

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The ZBT-1 doesn‘t work in mixed Mode. You can use it only for Zigbee of for Matter alone, but not both together at the same time. As far as I know, the development for the dual stack firmware stopped some time ago because of some technical issues. Anyway it is a good stick for Zigbee or Thread usage and also recommended for thismuse case.
You can read about this here:

Multiprotocol will remain an experimental feature and is not recommended for use.

A very good alternative is the „Zigbee 3.0 SMLIGHT SLZB-07 USB Adapter Smallest Thread/Matter Works With Zigbee2MQTT, Home Assistant, ZHA“ which is also configurable for Zigbee or Thread by installing the corresponding firmware.

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Does it support mixed mode though?

They really need to make this more obvious, this issue comes up way too often!

I don‘t know. There is a Multi PAN firmware available, but it is not recommended to use that one.