Hi,
Your understanding is wrong. You have configured /24 address in loopback which creates two route local and direct. When you disable the loopback, /32 will be marked as reject. This is avoid punting the packets to RE. You can read the difference b/w discard and reject route.
Policy statement created by you doesn't mention any protocol. Since there is reject route available in routing table, policy statement will match and advertise this route.
Expected behavior of Junos.
Your understanding is wrong. You have configured /24 address in loopback which creates two route local and direct. When you disable the loopback, /32 will be marked as reject. This is avoid punting the packets to RE. You can read the difference b/w discard and reject route.
Policy statement created by you doesn't mention any protocol. Since there is reject route available in routing table, policy statement will match and advertise this route.
Expected behavior of Junos.