Is transmission / subsuf scattering working correctly?

Doesn’t quite seem like the same issue. Sub surface scattering is managed on characters by an opacity texture, which is where the issue comes in.
plug a linear gradient into the materials, and see what happens for you.

If it were to work you would get a gradient effect for the scatter.
As you have it, scatter should just be applied to the whole item - which it is even if it doesn’t work right.