There's no age limit on infant carriers, so yes they absolutely can
but with caveats - the main issue being they are primarily designed for not-walking-yet babies, rather than toddlers.
If they reach the height limit, weight limit, or their head comes over the top of the seat shell, or if it's a seat with headrest, if their shoulders no longer fit under it in the highest position, then it's outgrown - whichever of these comes first. Sometimes the height limit is a bit unrealistic because the physical size of the seat shell prevents the use to that height. Infant carriers are almost never outgrown by weight alone except when the baby is very short and heavy.
Practically, I've seen infant carriers used with very small children like this until about age 2 or 3 on a very rare occasion, usually as a spare e.g. for travel, or by a family who don't have their own car. I know that in order to certify it to 87cm, they have to demonstrate that the seat can accommodate a seated height of about 50cm (there is a table in the legislation). However, with the Cybex Cloud which has the same height limit and is one of the longest-shell seats on the market, I have seen anecdotally that children tend to outgrow it in shoulder/head height before they reach the 87cm, so don't take it as an absolute given. (I'm not sure how the two seats compare in size).
The main issue once you get past about 2 is their legs, especially for carrying it around, because you tend to get to a point where their head and body is contained within the seat but almost all of their legs are out. It's not a safety issue, but it could be a comfort one and practicality (getting the seat into the car). This might be less of an issue with a seat like this which goes into a spin base, if you are intending to leave it on the base - there would be much less difference to something like the Joie 360 which is fixed, but equally infant carriers do tend to be lower down and closer to the back of the car. So the main issue in terms of comfort would be the leg room and the more reclined angle compared to a seat designed for older children.
If you're fitting with seatbelt in order to let the older child use the base for the Beyond toddler seat, bear in mind older children (2+) also tend to kick or push with their feet on the backrest of the seat, which is obviously no problem at all for younger babies because they aren't strong enough to move the seat, but for older toddlers even if they are physically small they can sometimes move the seat out of place.
In general there's no issue with using this type of seat past the suggested 15/18 months, but in terms of comfort and practicality you might find you want to change to a different seat type.
How old is DD1? What age would you be aiming for her to switch to HBB? It is usually best not to do this at the earliest opportunity as they do benefit from the protection of an ERF seat or 5 point harness until they are at least 4. However it might be possible to minimise the number of different seats you end up buying by swapping your eldest to something which covers both harness and booster stages e.g. Britax Evolvafix (though possibly not, if she is tall!)