To answer half of my own question I presume it's dropping the prefix as the nested apply is not matching and therefore without a pass we remove the route.  So aside from EEM/TCL any other options?

Xander, the add to Ron's question, if we vary what we want to do, in this case, match on an incoming VPNv4 prefixes RT. Then if the RT match is true apply the local pref changes to another prefix. What I was testing was something like this: RP/0/0/CP...

I don't see the same behavior as you, l have the same P1--P3 setup, here is the OSPF info:Router P1:    Link connected to: another Router (point-to-point)     (Link ID) Neighboring Router ID: 192.168.100.4     (Link Data) Router Interface address: 0....