You can activate "Switch on eSIM" in the device options. According to the dialogue, this then replaces SIM2.

But the device offers a choice of 2nd physical or eSIM

I can confirm that eSIM is supported. I have tested this myself. However, physical SIM cards on which you can load eSIM profiles like on a memory chip are even more practical. I currently use a sim chip from 9eSim on my Redmi. You can order it via their webshop.

eSIM from digital republic does not work for me.