v7.11.2

TE tunnel does not establish in the following example. Has anyone been able to establish a TE tunnel on one of the most recent v7 releases or have any input on the tunnel setup below? Looks like documentation is not inline with the current release so my main concern is misconfiguration. Applicable config included only.

Test topology is a ring with IPv6 underlay using OSPF and IPv6 overlay using eBGP l2vpn afi via PTP interfaces. VPLS / TE tunnels using loopback addresses.

All routers:
-------
OSPF neighbors are up and all routes learned
LDP neighbors established.
BFD sessions are up for BGP.
BGP peers are established.
BGP signaled VPLS tunnel is up.

/routing ospf instance
add mpls-te-address=2001:db8::1 mpls-te-area=0.0.0.1 name=area1 router-id=x.x.x.x version=3

/routing ospf area
add area-id=0.0.0.1 instance=area1 name=area1 type=nssa no-summaries

/mpls traffic-eng interface
add bandwidth=1Gbps interface=eth1
add bandwidth=1Gbps interface=eth2

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Trying to establish tunnel between 2001:db8::1 and 2001:db8::3 via 2001:db8:0:1::/127, 2001:db8:0:2::/127, 2001:db8:0:3::/127

On 2001:db8::1 -

/mpls traffic-eng path
add hops="2001:db8:0:1::2/strict,2001:db8:0:2::2/strict,2001:db8:0:3::2/strict" name=primary use-cspf=no

/mpls traffic-eng tunnel
add bandwidth=100Mbps from-address=2001:db8::1 name=tunnnel1 primary-path=primary to-address=2001:db8::3

Any thoughts appreciated.