This document explains the issue of PPOE traffic getting dropped over l2circuit after adding control-word.
VPWS packet with control-word over PPP-CHAPS packet (Packet size after decap: 34 bytes) is getting dropped.
But due to ASIC limitation of platforms-ACX710 and ACX5448, software fix is not available and workaround can be applied,
Workaround:
Disable Control-Word on l2-circuit or EVPN-VPWS.