ID 603323 - Usd point instancer structure is built incorrectly when a material is involved in the hierarchy

Problem summary
Usd point instancer structure is built incorrectly when a material is involved in the hierarchy

Customer reported version
Katana 6.5v6

Customer reported platform
Alma 9

Steps to reproduce

1) Download the attached .usda and .katana file.

2) Expand the SceneGraph and observe the 3 point instancers:

"instancer" has two instances of a cube, no material bindings

"instancer_prototype_material" binds a material to the "Prototypes" child of the PointInstancer

"instancer_source_material" binds a material within the prototype instance source

3) All three of these point instancers look correct in usdview, but when brought into Katana via a UsdIn node, cases 1 and 3 are valid instance arrays. Case 2 has a different hierarchy, in which no instance sources are created and the hierarchy is strangely duplicated.

Expected behaviour
The assigned material should correctly apply to the instances while maintaining the array.

Actual behaviour
The instance array breaks with the material assignment.

Workaround
Unknown.

Reproduced by support

This bug has been reproduced in:
Katana 8.0v3 - Windows 11 / Rocky 9
Katana 7.5v3 - Windows 11 / Rocky 9
Katana 7.0v6 - Windows 11 / Rocky 9
Katana 6.5v6 - Windows 11 / Rocky 9
Katana 6.0v5 - Windows 11 / Rocky 9
Katana 5.0v7 - Windows 11 / Rocky 9
Katana 4.5v7 - Windows 11 / Rocky 9
Katana 4.5v1 - Windows 11 / Rocky 9

Earliest version tested
Katana 4.5v1 - This feature (UsdIn) did not exist before this version