About SRTE for Recursive VPN Routes
Assume a use case that involves routes in a nondefault VRF that recurse over other routes in the same VRF before recursing over routes in the default VRF. In addition, these routes are signaled over BGP as EVPN Type-5 routes, where the Gateway IP field (GW-IP) in the route specifies the next hop. To support SR traffic engineering for these types of routes, the SRTE for Recursive VPN Routes feature allows the BGP to recursively resolve the route, iteratively find the next route that resolves the next-hop of the current route, until it reaches a route where the next hop is in the default VRF. This route must have the VPN label that is needed for routing, and the next hop being in the default VRF can now be used to select the endpoint for an SRTE policy to steer the traffic.
Thus, the SRTE for Recursive VPN Routes feature allows BGP to request policy from SRTE with GW-IP as the endpoint, wherein, SRTE returns the BSID for the matching policy. However, in default VRF, the BSID may change later if the CO policy is replaced with a better match.