Where do the PPPoE sessions terminate in the BT Network? VDSL2 kit or on MSANs behind them?
The PPPoE session terminates at your ISP's routers. Nothing at all to do with the BT Wholesale network or the Openreach (fibre) link between your cabinet and the exchange.
FTTC is handed over by Openreach at the exchange to a "wholesaler"'s network. Currently the three being BT Wholesale, Sky and TalkTalk. It is an Ethernet handover, (Openreach Generic Ethernet Access - GEA), and the PPPoE session is carried through on that.
VDSL2 only exists in FTTC between you and the cabinet.
The MSANs in the cabinets are Huawei or ECI.
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