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There is no RFC that requires a /32 for Inter-AS Option B. RFC 4364, Section 10 (procedure b) only requires the ASBRs to exchange labeled VPN-IPv4 routes. The /32 is an implementation requirement so the BGP next-hop can be resolved as a labeled forwa...
Harold hit it, as usual. ; )
That is the main thing, see this document also, case #1 it explains it.
https://www.cisco.com/c/en/us/support/docs/multiprotocol-label-switching-mpls/mpls/213935-configuring-non-path-computation-element.html
Elvin