RotateAroundAxis doesn't work correctly?

Coming from a programming domain the result of this material graph is confusing. I’m taking a relative world position, and simply trying to rotate it around the decals’ origin like so.

However, this produces the following result. It look as though the position is also being scaled down to zero? When plugging the output into a texture or noise node, this results in the texture and noise being scaled incorrectly. Ignore the banding in the GIF, the real output is smooth as expected.

Why is the node scaling as well?


This seems to fix it? This makes even less sense to me now. Does the RotateAboutAxis node also offset the result internally?