Pursue both and be transparent about it.

This situation is not uncommon and usually understood by the hiring managers. You just need to be transparent about it. If you got both offers, choices will give you a better bargaining position.

Like you, a few years ago, I applied to two positions in the same company. Told both hiring managers what was going on. Got one offer first, and that hiring manager held the offer for 4 weeks so I could complete the interview process with the 2nd position.

Later on had a candidate applied to a position on my team and another one on someone else's. Did not hold any grudge against the candidate on that.