For a PCE, to program the datapath with a pop action, the next hops must be programmed as 127.0.0.0/8 or IPv6 ::1. If the replication segment next-hop has no information, the next hop is reported to the PCE with status down.
For CLI-initiated replication segments, the next-hop label action can be set to pop, and the next hop does not need to be programmed as 127.0.0.0/8 or ::1.