Here is an excerpt from a VPN Interoperability handout I provide when teaching the CCTA class that explains this somewhat confusing error message, based on your log entry it looks like either your firewall's VPN domain or the peer object's VPN domain are not defined correctly and completely:
Packet was Decrypted, but Policy Says Packet Should not have been
decrypted – An encrypted packet was received by your firewall that was
decrypted successfully but one of the following has occurred:
• The source IP address on the decrypted packet does not correspond to
the known VPN domain of the VPN peer, or the destination IP address
does not fall within your own firewall's defined VPN domain. This is
most commonly caused by inappropriate NAT rules being applied to VPN
traffic on the VPN peer side; selecting Disable NAT in VPN Community
on the VPN peer’s settings will usually solve this problem.
• There is an overlap between the VPN domain of your firewall and the
VPN domain definition of the peer firewall; you or your peer may have
defined an overly-generous conflicting network such as 10.0.0.0/8 or
192.168.0.0/16 in your VPN domain and/or antispoofing setup. The
command vpn overlap_encdom communities –s run on the Security
Gateway will display any VPN Domain overlap conditions. Consider using
a Group w/ Exclusion object (where the peer’s VPN domain is excluded)
as your firewall’s VPN domain to get around this issue.
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