this post was submitted on 08 Jan 2024
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Second one does not necessarily have to be double nat'd. You can disable nat, disable the internet port entirely, disable DHCP, DNS, and any other IP services on the secondary router, and just connect the switch of the secondary router to the switch of the primary router.
The second "router" no longer performs any routing or server functions. It just acts as an access point and a switch. When the IOT devices connect to the AP of the secondary router and request an IP address via DHCP, the request is fulfilled by the primary router's DHCP server.
Assuming OP's problem with excessive devices is a bug at the physical layer (SSID) and not at the link layer (MAC), this should resolve it. If it's at the IP layer or higher, it can't be solved with their current equipment.
Since the secondary router is neither handing out DHCP addresses nor requesting a DHCP address for its LAN interface, it will need a static address within the primary router's subnet for devices to be able to access it.
Assuming the 2nd router is willing to play ball. I've seen some that won't go into access point mode.
Other than that though, it's another good option.