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Which behavior will take effect if both "soft-reconfiguration" is configured and route-refresh capability is negotiated ?

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soft-reconfiguration will be used since, of course, doing the operation on locally stored routes is faster.

If your peer supports route refresh (and most do), enabling soft-reconfig inbound is a waste of RAM and should be reserved for either when you have so much memory that you don't give a hoot, the peer is known to be slow to provide route-refresh updates or the bandwidth of the link is narrow enough that the BGP traffic is a concern to you.

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