Wouldn't a route out eth2 for 10.254.3.0/24 (or however he wants to add that), suffice for this?
What do your routes for 10.0.0.0/8 look like on FW2? Assuming the 172.20.1.1 interface is external, you have a 10.0.0.0/8 route going towards the left of your diagram into your LAN (well call that eth1 for now) and 0.0.0.0/0 going out eth2 which is external? I believe you can ping the peer because it is a public IP and FW2 eth2 interface is in fact external, that is expected.
If that is correct then FW2 is assuming all 10.0.0.0/8 traffic is supposed to source on eth1 (used as example above) and for this 10.254.3.63 its sourcing in on eth2, which is why Anti-Spoofing is kicking in.
If it isn't to much trouble, I would add a route for 10.254.3.63/32 (as a test) on FW2 to next hop towards FW1. If you want to route the entire /24, or whats in the encryption domain, ill let you decide.
set static-route 10.254.3.63/32 nexthop gateway address 172.20.1.200 on
Install policy and try to ping 10.254.3.63 again.