Please bring back the option as the layer grouping has become really messy due to different model surfaces from different programs coming in.
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It needs to be fixed, its the only usable way to import and apparently its still there but it depends on the import.
My workaround has been to make template file in 2025 with an empty model imported.
When you replace the link it will still have the collapse by material option. Not perfect but workable.
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This was a lifesaver for me - keep hierarchy is obviously the right way to go but my projects are often relatively ‘rushed’ and it saved me SO MUCH time to have a collapse by material option