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I agree - stay in Bellagio, it has the most going on so you will have easy access to everything with your little ones
Stay in bellagio.. we did a day trip from Milano it was gorgeous
Bellagio has lots of shops and restaurants. We stayed in an AirBnB in Varenna with our 2 yo and 4 month old several years ago and there were plenty of restaurants, shops,swim areas, boat rental etc with a less touristy feel.