it would be better to have a third switch in VC as RE (with no L3 uplink towards Cisco). Then your setup would work like a charm (after you enable graceful-restart for OSPF). What happens if RE fails in your current topology:
- RE failure would also cause OSPF topology change as L3 link towards Cisco would go down
- this would interrupt graceful-restart
- traffic blackhole until OSPF is restarted
Btw. This restriction would go away once Non-Stop Routing is implemented for OSPF (roadmap item).
If this worked for you please flag my post as an "Accepted Solution" so others can benefit. A kudo would be cool if you think I earned it.