Symptoms:
VMware NSX-T Data Center
Under route re-distribution the option for "Service Interface Subnet" refers to service interfaces on Tier-0 Gateways only, and not VRFs.
"Service Interface Subnets" refers to the CSP subnets configured on the Tier-0 Gateway. The VRF is a peer node to the Tier-0 Gateway. The per node service interface is considered the same as an external interface. Using "External Interface Subnet" re-distribution applies to both external interface and per node service interface.
This is intended workflow and is working as expected.
Workaround:
If there is a requirement NOT to advertise the VRF service interface subnets the workaround is as follows:
If there is a requirement NOT to advertise the VRF external subnets, follow the same steps as above but create prefix list with external interface subnets.