At the target node, if the packet matches a local locator prefix entry in the FIB and the payload type is either IPv4 or IPv6, then it is handed to the SRv6 Forwarding Path Extension (FPE).
The egress data path of the SRv6 FPE removes the SRv6 headers and passes the inner IPv6 packet to the ingress data path which performs regular exception handling for a ping or a traceroute packet.