Disclaimer: longtime VCI here -> I can only highly recommend attending a NSX ICM class to get through all the basics, aint always easy to get the fundamentals of NSX right from the get go: VMware NSX: Install, Configure, Manage [V4.0] (NSXICM4), delivered from your favourite VEDP (VMware Education Delivery Partner) or if you are a VCF customer directly from Broadcom Learning
To your question, simple reminder:
DR = Distributed Router, the name says it -> its DISTRIBUTED, hence on EVERY Transport Node belonging to the Transport Zone (=ESXi as well as Edges, IF they are added to the corresponding Transportzone though)
SR = Services Router, handling Services (like routing to external networks (BGP, OSPF, static), VPN, NAT, Gateway-Firewall, Gateway-IDPS, etc.) = can ONLY be instantiated on Edge Nodes, with more limits and caveats in detail, but SRs cannot be instantiated on ESXi hosts
May these blog series by Hari and Gary do help too:
https://spillthensx.com/nsx-t-east-west-traffic-flow/
https://vxplanet.com/2019/10/26/nsx-t-tier1-sr-placement-and-the-effect-on-northbound-ecmp-part-1/
BR
Steffen