Question Regarding ECLOSURE in ε-NFAs
The $\epsilon$-closure of a state $p$ is the set of all states, including $p$ itself, that are reachable by only by a chain of consecutive $\epsilon$-moves. Transitions on other inputs are not considered when computing $\epsilon$-closure$(p)$. They come in to play in the next step, when you compute the transition function for the equivalent NFA without $\epsilon$-moves.