Comprehensive and Detailed 150 to 250 words of Explanation From [SR Linux EVPN and Data Center Interconnect/Course Guide/topics]:
In an integrated gateway-based data center interconnect design, the gateway must interwork between the data center EVPN/VXLAN domain and the WAN VPN transport domain. For Layer 3 VPN connectivity on a Nokia 7750 SR integrated gateway, the base BGP instance must support the relevant VPN address families, such as VPN-IPv4 and EVPN, because the gateway participates in control-plane exchange between the data center and WAN sides. The VPRN must also be associated with the WAN transport, normally through MPLS tunnel binding, and the VRF target must match the corresponding VPRN on the remote gateway so that VPN routes are imported and exported correctly. A routed VXLAN interface, however, is an SR Linux IP-VRF/VXLAN construct used for symmetric L3 EVPN forwarding inside a VXLAN-based data center fabric. In this question, dcgw10 is acting as the integrated WAN gateway for L3VPN connectivity, so a routed VXLAN interface is not the required configuration item on the VPRN instance. Reference: integrated gateway DCI, VPRN over MPLS, EVPN-to-VPN interworking.
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