DirectLink by Hierarchy from Rhino looses materials and position on sync BUG?

While BY MATERIAL and COLLAPSE behave properly, BY HIERARCHY looses tm materials and moves objects back to original position, leaving gizmo where it is.

It really seems to be a bug, and prevent by hierarch to be used

Does anybody experience this issue on later versions?

™ 2023.1.2

Windows 11

Rhino 7 SR34