This is one of those things that surprises people because it goes against what they've been taught.
2 machines with the same hardware mac address on the same broadcast domain can talk to each other just fine as long as they have different IP addresses. The issue will arise if someone else on the network tries to talk to them.
Lets start with a test setup:
VM1 $ ip addr show dev enp0s8
3: enp0s8: <BROADCAST,MULTICAST,UP,LOWER_UP> mtu 1500 qdisc pfifo_fast state UP qlen 1000
    link/ether 08:00:27:3c:f9:ad brd ff:ff:ff:ff:ff:ff
    inet 169.254.0.2/24 scope global enp0s8
       valid_lft forever preferred_lft forever
    inet6 fe80::a00:27ff:fe3c:f9ad/64 scope link 
       valid_lft forever preferred_lft forever
 
VM2 $ ip addr show dev enp0s8
3: enp0s8: <BROADCAST,MULTICAST,UP,LOWER_UP> mtu 1500 qdisc pfifo_fast state UP qlen 1000
    link/ether 08:00:27:3c:f9:ad brd ff:ff:ff:ff:ff:ff
    inet 169.254.0.3/24 scope global enp0s8
       valid_lft forever preferred_lft forever
    inet6 fe80::a00:27ff:fe3c:f9ad/64 scope link tentative dadfailed 
       valid_lft forever preferred_lft forever
So notice how both machines have the same MAC addr, but different IPs.
Lets try pinging:
VM1 $ ping -c 3 169.254.0.3
PING 169.254.0.3 (169.254.0.3) 56(84) bytes of data.
64 bytes from 169.254.0.3: icmp_seq=1 ttl=64 time=0.505 ms
64 bytes from 169.254.0.3: icmp_seq=2 ttl=64 time=0.646 ms
64 bytes from 169.254.0.3: icmp_seq=3 ttl=64 time=0.636 ms
--- 169.254.0.3 ping statistics ---
3 packets transmitted, 3 received, 0% packet loss, time 2001ms
rtt min/avg/max/mdev = 0.505/0.595/0.646/0.070 ms
So, the remote host responded. Well, that's weird. Lets look at the neighbor table:
VM1 $ ip neigh
169.254.0.3 dev enp0s8 lladdr 08:00:27:3c:f9:ad REACHABLE
10.0.2.2 dev enp0s3 lladdr 52:54:00:12:35:02 STALE
That's our MAC!
Lets do a tcpdump on the other host to see that it's actually getting the traffic:
VM2 $ tcpdump -nn -e -i enp0s8 'host 169.254.0.2'
16:46:21.407188 08:00:27:3c:f9:ad > 08:00:27:3c:f9:ad, ethertype IPv4 (0x0800), length 98: 169.254.0.2 > 169.254.0.3: ICMP echo request, id 2681, seq 1, length 64
16:46:21.407243 08:00:27:3c:f9:ad > 08:00:27:3c:f9:ad, ethertype IPv4 (0x0800), length 98: 169.254.0.3 > 169.254.0.2: ICMP echo reply, id 2681, seq 1, length 64
16:46:22.406469 08:00:27:3c:f9:ad > 08:00:27:3c:f9:ad, ethertype IPv4 (0x0800), length 98: 169.254.0.2 > 169.254.0.3: ICMP echo request, id 2681, seq 2, length 64
16:46:22.406520 08:00:27:3c:f9:ad > 08:00:27:3c:f9:ad, ethertype IPv4 (0x0800), length 98: 169.254.0.3 > 169.254.0.2: ICMP echo reply, id 2681, seq 2, length 64
16:46:23.407467 08:00:27:3c:f9:ad > 08:00:27:3c:f9:ad, ethertype IPv4 (0x0800), length 98: 169.254.0.2 > 169.254.0.3: ICMP echo request, id 2681, seq 3, length 64
16:46:23.407517 08:00:27:3c:f9:ad > 08:00:27:3c:f9:ad, ethertype IPv4 (0x0800), length 98: 169.254.0.3 > 169.254.0.2: ICMP echo reply, id 2681, seq 3, length 64
So, as you can see, even though the traffic has the same source and destination hardware mac address, everything still works perfectly fine.
The reason for this is that the MAC address lookup comes very late in the communication process. The box has already used the destination IP address, and the routing tables to determine which interface it is going to send the traffic out on. The mac address that it adds onto the packet comes after that decision.