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DP83822I: GPIO AND LED INTERFACE

Part Number: DP83822I

I am trying to understand how a PIN can be used for LED / GPIO1 interface. My understanding is that GPIO are used to access PHY registers? What is GPIO used for then  - in Mode 2 we can control LEDs & GPIO both.  If LED is bliking then GPIO pin cannot participate in accessing PHY registers? But we may need todo the same for variaous status details?

Am I missing something at my understadig level?