To use DvR-One-IP, a circuitless IP (CLIP) must exist in the VRF to which the DvR-One-IP interface belongs. If the DvR-One-IP interface is part of the global router (GRT), a CLIP must exist in the GRT and it must be configured as the IS-IS ip-source-address. If these CLIPs exist, pinging hosts in the DvR-One-IP subnet from the DvR Controller works as expected.
If the CLIPs do not exist, pinging hosts in the DvR-One-IP subnet is not possible from DvR Controllers. The ping attempt times out and the switch displays the following warning message: Warning: For DVR one IP a loopback IP must be configured on the VRF. If you provide a source IP address with the ping command, the switch does not display the warning message but the ping attempt fails.
This same restriction also applies to IP traceroute.