Those who said the two rak'ahs of tawaf are prayed at the edge of the tawaf area

Ibn Abi Ammar said: I saw Sayyiduna Ibn al-Zubayr (may Allah be pleased with him) perform tawaf; then he came (to the Station of Ibrahim) and prayed, while those performing tawaf were between him and the Ka'bah.

Kathir bin Kathir narrates from a person who reported from his grandfather that he saw the Messenger of Allah (peace and blessings be upon him) praying near the Gate of Banu Sahm, with no sutrah (barrier) between him (peace and blessings be upon him) and those performing tawaf, while those performing tawaf were passing in front of him (peace and blessings be upon him).

Something similar is narrated from Sayyiduna al-Muttalib bin Abi Wada'ah (may Allah be pleased with him).