Desaturation node not working in Dynamic Materials

I’ve created a UI Domain material with a Vector parameter that defines the color of the material. Inside the material logic, I use a ‘Desaturation’ node.
When I create a dynamic material instance through blueprints and set the vector parameter value, the ‘Desaturation’ node stops working.
You should be able to easily reproduce it with a simple Vector Parameter + Desaturation node Material.
Is this a limitation or a bug?

just noticed this is also not working on my end…

quick update, the desaturation does work in Dynamic materials, think my values were off where I could not see the changes.