Hi [PB]Aphexx and -
Ok thank you both for the additional information I was finally able to experience what you both are reporting. I have entered a bug report asking about the need to offer a reload option after the revert option is selected, for reference UE-12865. I will say that on my end I was able to work around this issue if before reverting an item I make sure that it is closed in the engine. So for a material, make sure that it is not open in the material editor then revert and upon opening it again your reverted asset should appear. I know that this is not the hot reloading that you are expecting, but it is a small workaround for the time being. As our engineers dig into this issue, I will keep you both informed here.
Thank you both for your patience with this issue -