Hi JJ,
a network Loop is a L2 problem. VRRP is a redundancy protocol taht works on L3.
You have to investigate your L2 topology. How are your devices connected to each other, do you use link aggregation, Spanning Tree, are SMLTs on yor switchcluster correct configured.....
In Cisco speech you can do L2 redundancy active/passive with STP. This is with Avaya identically.
To use active/active redundancy @ L2 in the Cisco speech you use VSS, in the Avaya world you do that with a design called Switch Cluster wich uses the features IST/SMLT to
built active / active L2 redundancy.
So do investigate your L2 topology, check the links, check your STP config and the link aggregation on your devices, this will help you to find the Loop in your network.
Good Luck