The requirement for /32 loopback addresses are not an absolute necessity but rather a best practice recommendation to make sure we don't use a less specific route (aggregate route or summary route) from ingress to egress PE, which could break the LSP.
In your case, you have a /24 subnet configured on the loopback interface. By default OSPF advertises the prefix for the loopback interface as a /32 (host route) regardless of the subnet mask configured, while LDP advertises it according to the configured subnet mask.
You need to configure "ip ospf network point-to-point" under the loopback interface for ospf to advertise the prefix according to the configured network mask. If you do this then the FEC advertised by LDP and the ospf advertised prefix will match, which should solve the issue you are seeing.
I would still recommend to configure your PE loopback interfaces using a /32 subnet mask.
Hope this helps,
Harold Ritter Sr. Technical Leader CCIE 4168 (R&S, SP) email@example.com México móvil: +52 1 55 8312 4915 Cisco México Paseo de la Reforma 222 Piso 19 Cuauhtémoc, Juárez Ciudad de México, 06600 México
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