You drew in the bonus pass. 40 tags are in the bonus. Up to 10% could be non-res. It doesn't mean 10% have to be non-res.
For me choice 1 is always a long shot. Choice 2 is what I actually want, assuming I don't have enough points to draw either tag in the bonus pass.
The problem with that though is if Choice 1 is above your point level, but Choice 2 you have enough bonus points for, you will always draw Choice 2. For a chance to hit a long shot for Choice 1, both choices need to be outside of the bonus pass 1-2 points.
If either tag in Choice 1 or 2 is a guaranteed draw you will always draw that tag.
This year I had 4 points. Choice 1 was approx a 13 point draw. Choice 2 was approx 5-6 points. We drew the 2nd choice in the lottery draw.
If you draw in the lottery draw after the bonus, when your app gets pulled they look at Choice 1. If Choice 1 has tags left, you get them. If not they look at choice 2. If you they have choice 2 tags left you get them. If not they put you back in the 3-5 draw which basically means you won't get a tag unless choice 3-5 has a really easy to draw option like a limited opportunity type tag.