First, the router will certainly receive and reply packets with TTL = 1.
Then about loopback0. I have explained in the post here: https://forum.huawei.com/enterprise/en/ebgp-max-hop/thread/610378-863
In fact, the forwarding process on the routers is as follows: When the RT1 sends packets, If a valid address of any local interface is used as the source address, the router searches the routing table and forward packet based on the outbound interface. The routing table is used to forward packets, so the processing here can be considered as a hop. After the packet reaches the RT2, the router does not search for the routing table. Instead, the router finds that the destination address of the packet is the local address, even if the destination address is not the address of the inbound interface, the packet is directly sent to the CPU for processing.
Therefore, even if the loopback address of the peer router is pinged, there is only one hop for the forwarding.
Another explanation: According to RFC 791 (IPv4) and RFC 2460 (IPv6), the TTL value decreases by 1 each time a packet is forwarded by a node. Packets are not forwarded through the loopback interface. Therefore, the TTL value is not reduced. The TTL value of 1 is sufficient.
Finally, NAT only changes the address of the packet, and other parameters, including the TTL, remain unchanged.
I hope this helps.