Hi,
Thanks for bringing this to our attention. This is indeed a bug, and I’ve filed it here: Unreal Engine Issues and Bug Tracker (UE\-275153)
The issue will go through our review for public visibility, and if approved you will be able to check the status of it with that link.
You’ve identified the cause of the issue. I think the correct solution would be to strip out the scale entirely in FGatherTransformOrigin::Run. I’ve added this to my tasks for 5.7, but as always timelines are subject to change, and the best way to keep up-to-date on the issue will be with that link. In the meantime your solution should be fine until we can get this resolved.
Thanks!