Your description is correct. From my two test peers, I receive the two routes mentioned with the paths that I have set...one with 2 prepends and one with 6. I am sending a default route to the would be CPE router and they are sending me both test networks. I have tried this with differing ASN's and similar ASN's with no difference in results but I can say that I have changed lots of things so I could go back and perform this testing again with more control. We set local pref for our main DIA(200), a CDN(1), backup DIA(100), iBGP(50), and I had originally set the CPE peers as 200 but I tried to set them to 40 as well so that they wouldn't overwrite each other in favor of the better route via iBGP, share your thoughts if this idea was flawed! Last question, I have set next-hop-self on the iBGP peers.
I am taking over the reigns on this network so some of this is a bit foreign, at least compared to the person that set it all up. If I left any voids, please let me know what details I can provide.
I am going to do a quick test in the AM but BGP aggregation is setup on both of the core Peers and I am curious if this is causing some of my issues. I think it is somewhat atypical to advertise your aggregated networks via ebgp. Perhaps in this scenario it is best to install a managed router at customer prem? Or is it advisable to allow them to use our AS when peering with our IP space? I have route policies in place to prevent them from advertising anything other than the blocks we have provided and we only provide them a default route.
I will setup a pair of private address blocks on these lab switches and allow them in the route policies to see if they will show up as I am expecting in the route tables.