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I prefer 1 although 2 is also nice and seems a faster knit with a larger gauge.
You can take out some of the patterns to shorten 1 and/or you can make it a split hem at the bottom or a high-low hem with a little split, I think those can work for you.
Is that first pattern from Fall's VK?
Let us know what you decide.
Joyce, yup it's from the most recent VK. I also liked the real cabled cape thingy on the cover. The other sweater is from an older VK.
I decided to try swatching for #1 with the white and a random single ball of dark teal in my stash, and I like it quite a lot. So I might do that for #1, and the original grey/white for #2. My grey yarn is slightly lighter in color than the sample.
Love them both, and in the colors shown. Which yarn feels better in your hands? I lean toward the fair isle, maybe just because it will showcase your workmanship so dramatically.