We routinely have LOP alarms from radial parts of the system for faults elsewhere on the system. On radial portions of our system, the change in current for voltage depression is sometimes way less than 2%. Having a flood of momentary LOP alarms from several substations was confusing to dispatchers, so I contacted the relay manufacturer. The manufacturer claimed we were the first utility to report this issue to them. As a stopgap, so we added a timer to the LOP Status the requires it stay exerted for 10 seconds before passing the alarm onto dispatchers.
We have experienced blown PT fuses, so using LOP seems reasonable. I do not know of any instances where we had an incorrect trip due to LOP enabling backup settings. I would encourage Mbrooke to keep digging and pass the incorrect LOP events onto the relay manufacturer.