When configuring a new security zone on a Palo Alto Networks firewall, the two valid zone types are:
Tunnel: A Tunnel zone is used for traffic that is associated with a VPN tunnel, such as IPSec tunnels. Traffic passing through a tunnel interface is classified into this zone.
Virtual Wire: A Virtual Wire zone is used when a firewall operates in transparent mode (also known as Layer 2 mode). In this configuration, the firewall can inspect traffic without modifying the IP address structure of the network.
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