Customer XYZ network consists of an MPLS core, IS-IS running as IGP, a pair of...

The IS-IS Overload Bit allows a router to signal to its peers that it should be temporarily excluded from SPF calculations for transit traffic:

A: The Overload Bit can be automatically set at startup (known as "startup overload") to allow the router sufficient time to converge IGP, BGP, and stabilize protocols before accepting transit traffic.

D: The bit can remain set until all dependent protocols have converged and the router is fully operational.

Why other options are incorrect:

B: The router’s directly connected prefixes remain reachable; only transit path calculations exclude the overloaded node.

C: MPLS-TE does not automatically reoptimize tunnels based on the Overload Bit.

E: There is no specific restriction preventing Overload Bit usage on Route Reflectors.