If the ISL between two VSX core switches is down and logs indicate that Core-2 has disabled its VSX LAG interfaces, it means Core-2 has disabled its VSX LAG interfaces, likely as a protective or failover mechanism.

Keepalive packets being dropped (Option B) may cause issues but logs specifically state interface disablement.

Both switches forwarding traffic (Option C) is unlikely if ISL is down.

Downstream switches inability to forward traffic (Option D) is a consequence, not the cause.