I like to set up new device as brand new, so didn't go through the iPhone-to-iPhone transfer step. What I learned it if you skip that, the activation process on new phone will automatically activate the physical SIM in the phone (I am on iPhone Upgrade Program, if that matters). I had to go to store today to transfer to eSIM. The process is quick though, and the store is not crowded at all.
What I'm trying to figure out now is how to enable 5G. I have unlimited elite plan and had 5G when using the physical SIM. Now on eSIM, 5G option is gone. I do have a physical SIM for a different line in the phone but had the line turned off (according to Apple support doc, in order to use 5G in dual sim, second line needs to be turned off). So far the 5G option hasn't come back yet. Tried rebooting too, no dice.