My network has a limited MPLS deployment currently. It is not enabled 
everywhere. The example I provided is a lab.

This not expected behavior and Cisco has confirmed for me that it is not. 

Other Cisco platforms do not drop the traffic such as the ASR920.

The ME3600X should not be dropping the packets, it should be dropping the mpls 
tag and then forwarding the packets as a normal routed packet according to the 
FIB.

MPLS services would fail on that path. But routing should not fail.

                                          
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