How does seed #1 and #2 work

It says that seed 1 and 2 gets a bye in playoffs. Are those just the #1 teams in both groups or can they be from the same group?

#1 from both groups

The only way it would've been from the same group was if every team in group Alpha failed to win at least 2 games

If I'm correct #2 plays vs #3 of the same group, loser eliminated, winner plays against #1 of that same group. Winner of that second game makes Shanghai loser gets lower bracket