Based on https://www.linkedin.com/feed/update/urn:li:activity:7381217822187708416/-- there was never a requirement to use an interface IP address for OSPF router ID ...
If the loopback address is different then /32 the PE router will advertise via LDP a network with, let’s say, /24 (because the Connected route will be in it’s routing table), while it’s LDP neighbor ...
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