the tunnel type is configured as "tunnel mode gre 1” and this means this is L2 GRE tunnel. For L3 GRE, this should be “tunnel mode gre ip”
This is a sample config for L3 GRE, between two Aruba controllers.
IPv4 Controller-1 Configuration
(Controller-1) (config) # interface tunnel 104
description “IPv4 L3 GRE 104"
tunnel mode gre ip
ip address 1.1.1.1 255.255.255.255
tunnel source vlan 10
tunnel destination 20.20.20.249
Trusted
IPv4 Controller-2 Configuration
(Controller-2) (config) # interface tunnel 204
description “IPv4 L3 GRE 204"
tunnel mode gre ip
ip address 1.1.1.2 255.255.255.255
tunnel source vlan 20
tunnel destination 10.10.10.249
Trusted